Chapter 15 and Its Impact on US and Foreign Bankruptcies

Financier Worldwide

The adoption of Chapter 15 of the U.S. Bankruptcy Code (the "Code") as part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (effective as of 17 October 2005) is designed to foster greater cooperation between domestic and foreign courts and trustees and other persons responsible for administering cross-border insolvencies. The stated goals of Chapter 15 are: (1) "greater legal certainty for trade and investment;" (2) fairness and efficiency for all creditors and other interested parties; (3) maximization of asset values; and (4) facilitating the "rescue" of financially troubled companies to protect investments and employment.

Article: Chapter 15 and Its Impact on US and Foreign Bankruptcies