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Expert Analysis

Arcapita Bank Closes Escape Valve For Foreign Defendants

By Mark Salzberg (October 26, 2017, 12:43 PM EDT) -- On Oct. 13, Judge Sean H. Lane of the U.S. Bankruptcy Court for the Southern District of New York issued an opinion addressing the presumption against extraterritoriality of U.S. law as well as the limits of the doctrine of international comity. The opinion, issued in an adversary proceeding pending in the Arcapita Bank Chapter 11 bankruptcy case, is certain to have a dramatic impact in adversary proceedings involving foreign defendants. Unfortunately for those foreign defendants, it may now be much more difficult to escape from those proceedings....

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