Chapter 15 of the Bankruptcy Code provides a mechanism for debtors to have foreign insolvency proceedings recognized in the U.S. This recognition allows orders from foreign courts to be given effect in the U.S., offering key protections such as the automatic stay. In contrast, Chapter 11 focuses on domestic reorganization, allowing debtors to restructure their debts and business operations within the U.S. legal framework.

One of the key issues in Chapter 15 cases is the recognition of a “foreign main proceeding.” This requires the foreign representative to demonstrate that the foreign country where the proceeding was filed is the debtor’s “center of main interests.” This recognition grants the debtor and its property within the U.S. certain protections under the Bankruptcy Code. Additionally, the foreign representative plays a crucial role in managing the Chapter 15 proceeding in the U.S., acting as the movant in motions and seeking recognition of the foreign insolvency proceeding.

Provisional relief is another important aspect of Chapter 15, allowing debtors to seek temporary protections until the foreign proceeding is recognized. This includes the imposition of the automatic stay and temporary recognition of the foreign court’s insolvency order. Noticing and claims in Chapter 15 cases differ from Chapter 11, as claims are asserted in the foreign main proceeding, often leading to less robust noticing in the U.S. Overall, Chapter 15 bankruptcies are complex and require experienced bankruptcy counsel to navigate effectively. Read full article here.