Recent Articles on Chapter 15
by Scott K. Brown
Lewis and Roca LLP; Phoenix
There have been several articles recently published discussing and critiquing the early chapter 15 case law. However, two articles in particular are worth noting. The first is entitled "A Tale of Two Proceedings: ‘Turnabout Is Fair Play’ in the Yukos U.S. Bankruptcy Cases," which discusses some of the intriguing issues presented by the Yukos chapter 11 and chapter 15 cases and their implications for future cross-border restructurings. Addressing Yukos, author Kurt A. Mayr claims that the bankruptcy court’s ability to grant temporary relief under §1519 “demonstrates the breadth and flexibility of the relief available under new chapter 15.” Additionally, Mayr explains that the Russian receiver’s innovative use of chapter 15’s expansive powers, including the temporary injunction on the sale of Yukos’s assets, “may likely serve as a model for other contested distressed transactions in the future.”
Cases Filed and Decided under Chapter 15 of the Bankruptcy Code
by Joseph Zagraniczny
Bond, Schoeneck & King, PLLC; Syracuse, N.Y.
by Sara Ternes
Bond, Schoeneck & King, PLLC; Syracuse, N.Y.
Although decided under §304 of the Bankruptcy Code, the court also analyzed the effect that chapter 15 would have on the outcome of the case if the case had been decided under the then-enacted chapter 15 of the Bankruptcy Code. The case centers around a settlement for the distribution of proceeds of a motion picture between an Italian debtor in a bankruptcy proceeding pending in Rome and TriStar Pictures Inc. The settlement agreement provided that the distribution proceeds would be directed to the Italian debtor’s trustee. The movie’s producer opposed sending all of the proceeds to the debtor’s trustee, claiming he was entitled to be paid from the proceeds as well.
Current Issues and Developments in Cross-Border Insolvencies
by James L. Patton, Jr.
Young Conaway Stargatt & Taylor, LLP; Wilmington, Del.
Prior to its repeal with the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act, §304 provided authority for adjudicating international insolvency issues before the U.S. Bankruptcy courts where a proceeding had already been filed or would be more appropriately filed in a foreign jurisdiction. The purpose of this section was to shield American creditors and assets located within the Unites States from piecemeal distribution of assets resulting from foreign reorganization or liquidation procedures. Section 304 acted as a jurisdictional aid to foreign bankruptcy representatives by providing for discovery and a structured distribution of assets.
Letter from Committee Co-Chair
Dear International Committee Members:
My name is Ronald J. Silverman and I am one of your International Committee co-chairs. I would like to take this opportunity to introduce to you Luis Salazar and Sandy Shandro, our new co-chairs for the 2007 International Committee. Mr. Salazar is a partner in the Business Bankruptcy and Reorganization Group of Greenberg Traurig LLP in Miami. Mr. Shandro is a former partner in the Restructuring and Insolvency Group of Freshfields Bruckhaus Deringer LLP and currently is the Dean of the Faculty of Laws at the University College London, resident in London.
We look forward to an exciting year. ABI has renewed its commitment and focus on international matters, and we expect enhanced programming in that regard. The Winter Leadership Conference, to be held Dec. 6-8, 2007, at the Westin Mission Hills Resort in Rancho Mirage, Calif., will feature a terrific joint committee meeting between the International and UCC Committees on the subject of Securing Your Transactions Across Borders.
We also would like to remind the committee membership that the ABI International Committee affords its membership extensive opportunities for publishing. The quarterly International Committee Newsletter and the monthly International Scene column of the ABI Journal provide frequent publishing opportunities. Anyone interested in publishing articles should e-mail me (ronald.silverman@bingham.com), Mr. Salazar (salazarl@gtlaw.com) or Mr. Shandro (sandy.shandro@ucl.ac.uk). If you are interested in publishing an article in the International Committee newsletter, please include our newsletter editors Gordon W. Johnson (gwjohnson@kirkland.com) and Scott K. Brown (sbrown@lrlaw.com) in your email.
Very best regards,
Ron Silverman
Luis Salazar
Sandy Shandro