The Divide Between Maritime And Bankruptcy Jurisdiction

Law360, New York (October 6, 2016, 11:05 PM EDT) -- Maritime bankruptcies can pose unique challenges for U.S. bankruptcy judges, and the ongoing Chapter 15 proceedings instituted on behalf of Hanjin Shipping Co. Ltd. provide an excellent example. While the judges who have rendered decisions in the U.S. case so far have done their best to maintain order, owners of cargo borne by Hanjin vessels, and holders of maritime liens for towing and fuel services, have continued to balk at the restrictions imposed on creditors while Hanjin works out it rehabilitation. There are three root causes of the continuing disconnect between bankruptcy and admiralty law and procedure in the United States:...

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