Written by: John Knapp
Cairncross & Hempelmann, PS; Seattle
In June 2005, the new Brazilian Bankruptcy Law (the Law)
became effective. The Law took its inspiration to some extent from chapter 11
of the Bankruptcy Code. Efforts under the previous, more rigid law (or concordata)
to restructure business enterprises inevitably ended up in liquidation, which
is what the Brazilian concept of bankruptcy (falência) tends to
encompass. For maximum flexibility, the Law now provides for judicial
reorganization, extrajudicial reorganization and liquidation. As of May 2007,
446 requests for judicial reorganization under the Law were filed in Brazil.
Read the full article.
Materials from "Cross-Border Asset Protection and Recovery" Panel at the ABI Caribbean Insolvency Symposium
On January 18, 2008 the ABI held its fourth annual Caribbean Insolvency Symposium in Hollywood, Florida at the Westin Diplomat Hotel. With almost 200 attendees, amazing facilities at the resort, numerous panels on relevant cross border and other topics and excellent speakers, it was a huge success. Many thanks go to the Conference Chair, Trish Redmond, the Judicial Chair, Judge Robert Mark, and the meeting planner, Jennifer Aversano.
The panel on “Cross-Border Asset Protection and Recovery” highlighted several interesting issues on the topic. Moderated by Allison R. Day of Genovese Joblove & Battista, P.A., the panel included Jerome L. Wolf of Duane Morris, LLP, Paul S. Singerman of Berger Singerman, P.A., C. Eduardo Romeiro of Lautenschleger, Romeiro e Iwamizu and Michelle Campbell of AlixPartners, LLP.
Below are two informative articles contained in the session materials. The first, written by Michelle Campbell, addresses the utilization of digital forensic methods when collecting evidence. The second, written by Paul S. Singerman, discusses potential pitfalls in offshore asset protection.
Written by: Michelle Campbell
AlixPartners, LLP; Los Angeles
Successful cross border asset protection and recovery efforts involve the right combination of accountancy based investigative methods, business intelligence and forensic technology expertise. This article addresses the third piece of that investigative puzzle – digital forensic methods being utilized when bank secrecy and other difficulties present barriers to collecting your evidence.
The simple proposition is this: People like to monitor their money and assets, and the primary way they do that these days is through the use of their personal computers and the Internet. A person’s computer and other devices are treasure troves in an asset tracing investigation. Information gleaned from those devices can tell you where the money and assets are hidden. Forensic techniques in connection with personal computers and other devices are particularly critical when assets are hiding with Caribbean basin financial entities that are notorious for bank secrecy.
Read the full article.
Written by: Paul S. Singerman
Berger Singerman, P.A.; Miami
The Caribbean has long been a favorite location for persons seeking to shelter assets in
offshore trusts as glamorized in popular culture in, among other things, books
and movies such as The Firm. There is circuit court case law in the
bankruptcy context that should give offshore asset protection planners pause
when drafting their next trust instruments. In bankruptcy, the critical issue
is the control, or lack thereof, afforded a debtor by a particular trust
instrument. The degree of control may lead to a finding that a debtor’s
interest in an offshore asset protection trust (“OAPT”) constitutes property of
his or her bankrupt estate. If such a finding is made, then it won’t be long
before the debtor is on the receiving end of a turnover motion made pursuant to
Bankruptcy Code section 521(4). The failure to comply can result in a motion for order to show cause why he or
she should not be held in civil contempt. If a civil contempt citation issues,
incarceration is an available remedy. While a bankruptcy trustee might never
get his hands on the OAPT trust assets, a debtor would have to balance indefinite
incarceration against the value he or she places on the property ordered to be
turned over.
Read the full article.
ABI's 26th Annual Spring Meeting, the networking and CLE event of 2008, will be held April 3-6 at Washington, D.C.'s Renaissance Hotel in the Nation's Capital! Join us during cherry blossom season for exciting and informative sessions, including a luncheon keynote by Supreme Court Justice Samuel A. Alito, Jr.
The International committee will meet on Saturday, April 5, from 4:00 to 5:30 p.m.
