Chapter 15: Utah Bankruptcy

US Bankruptcy courts

What is Chapter 15 Bankruptcy?

Chapter 15 bankruptcy is a section of the US Bankruptcy Code that deals with cross-border insolvency cases. It provides a mechanism for coordination between the US courts and courts in other countries in cases where a debtor has assets or operations in multiple countries.

  • Chapter 15 allows a foreign representative of a debtor to file for recognition of a foreign proceeding in the US. Once recognition is granted, the foreign representative has the ability to take certain actions in the US, such as bringing claims, collecting assets, and exercising control over the debtor’s affairs.
  • Chapter 15 also provides for cooperation between US courts and foreign courts, and allows for the coordination of proceedings in multiple countries. For example, a US court may stay or modify proceedings in the US to give priority to proceedings taking place in another country.
  • Chapter 15 has been used in a number of high-profile cases, including the bankruptcy of Lehman Brothers, which was a multinational financial services firm that filed for Chapter 11 bankruptcy in the US in 2008. The bankruptcy proceedings involved entities in multiple countries, and Chapter 15 was used to coordinate the proceedings and provide for the distribution of assets to creditors around the world.
  • Another notable example of Chapter 15 being used is in the bankruptcy of the Brazilian oil company, OGX. In that case, the US bankruptcy court recognized the Brazilian insolvency proceedings and provided for coordination between the Brazilian and US courts.

Overall, Chapter 15 is an important tool for handling complex cross-border insolvency cases, and it has been used in a number of significant cases over the years.

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