3rd Circ. Backs Ch. 15 Protections For Bankrupt Aussie Co.

Law360, Wilmington (August 28, 2013, 6:47 PM EDT) -- The Third Circuit on Tuesday affirmed bankruptcy protections granted to Australia-based ABC Developmental Learning Centres Ltd., thwarting a bid by RCS Capital Development LLC to dislodge the automatic stay shielding ABC's assets from a $47 million breach of contract judgment.

In a 28-page opinion, the three-judge panel ruled the insolvent Australian child care provider was entitled to Chapter 15 recognition and a stay protecting its U.S. assets from creditor actions, regardless of the fact that that those assets are fully encumbered.

Austrailia's Corporations Act utilizes receivers...
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