2nd Circ. Says Foreign Cos. Can't Skirt Key Bankruptcy Rule

Law360, New York (December 11, 2013, 6:32 PM EST) -- The Second Circuit held Wednesday that foreign companies seeking U.S. recognition of their bankruptcy proceedings in their home countries must comply with a provision that requires a debtor to have either a business or property in the U.S. in order to obtain relief.

A three-judge panel reversed U.S. Bankruptcy Judge Shelley C. Chapman’s ruling last year that allowed Queensland, Australia-based property finance group Octaviar Administration Pty Ltd. to be recognized as a foreign proceeding under Chapter 15 of the U.S. Bankruptcy Code.

The panel held that...
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