Mar 19, · On September 18, , the Bankruptcy Court entered an order in the Chapter 15 cases, permitting the Canadian receiver to proceed with Missing: alpha bloodlines. comity. 12 In , the Bankruptcy Code amendments 13 included a new chapter 15, essentially adopting the Model Law on Cross-Border Insolvency drafted by the United Nations Commission on International Trade Law (“UNCITRAL”) 14 as organic law in the United 9 Jay Lawrence Westbrook, “ Locating the Eye of the Financial Storm,” 32 B karacto.xyzg: alpha bloodlines. Chapter 15 was added to the Bankruptcy Code in with the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act. Chapter 15 is essentially the United States' adoption of the United Nations Commission on International Trade Law (UNCITRAL) which addresses international bankruptcy karacto.xyzg: alpha bloodlines.
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The Chapter 15 proceeding is usually, therefore, considered ancillary or secondary. The main proceeding typically takes place in the foreigner's home country. A foreign company may choose to file a Chapter 15 proceeding if an insolvency case is pending in another country. A Chapter 15 case must be filed in the US Bankruptcy Court by a foreign representative requesting the recognition of a foreign proceeding. The petition must prove that the foreign proceeding exists.
After the filing, the Bankruptcy Court will designate the foreign proceeding as either "foreign main proceeding" or "foreign non-main proceeding," with the difference being that in a non-main proceeding, the debtor does not have its main interests in that country. Upon the recognition of a foreign main proceeding, the automatic stay goes into effect in the United States to protect the assets of the foreign debtor that are within the United States.
Once the foreign representative initiates the Chapter 15 case, it can seek further relief from the bankruptcy court, including the filing of a full bankruptcy petition, such as under Chapter 7. The US Bankruptcy Court in a Chapter 15 proceeding is generally limited in the scope of its power to affect only the assets of the foreign entity or persons that are within the United States. Therefore, the US Court defers to many actions of the foreign court.
But the US Bankruptcy Court can authorize the appointment of a trustee or examiner to act in the other country on behalf of the bankruptcy estate in the United States. The foreign representative is also authorized to conduct the US business of the company in the ordinary course. The US Bankruptcy Court may also offer additional aid to a foreign representative—but only in circumstances where the Bankruptcy Court determines that the laws of the foreign court did not violate US laws or public policy and that the foreign court is fair.
If the US Bankruptcy Court determines that the foreign court is lacking in this regard, it can offer additional assistance to the foreign national.