LAW-2484 International Insolvency
Todays bankruptcy practice seldom centers around one debtor filing one case in a single nations bankruptcy court. Most corporations of any size have operations and assets in more than one country. In addition, many troubled corporations are part of a corporate group that includes affiliated entities operating in numerous countries, many of which will file their own insolvency proceedings in their countries of incorporation. The most obvious example of this trend is the Lehman Brothers group of companies: approximately 80 Lehman affiliates commenced insolvency proceedings in 16 countries. International Bankruptcy is a course designed to deal with this world of multi-jurisdictional insolvency. The course consists of two modules, Comparative Insolvency Law and Managing Cross-Border Cases. The first module covers six class sessions. The introductory session covers two topics. First, it summarizes aspects of United State bankruptcy law that are applicable to many crossborder issues and are relevant to the comparative law portion of the course. Next, it explains the role of insolvency law in national economies and sets the framework for the rest of the comparative law sessions. During the remainder of the comparative law module, the course surveys the insolvency laws of Canada, China, England, Japan, Mexico, and Western Europe (Austria, France & Germany). Common topics include prerequisites that must be satisfied before an insolvency case can be filed, whether an automatic stay of collection and other proceedings exists, how the case is administered (judicial, administrative or other), and whether the system is focused on liquidation or permits reorganization. The course then turns to the second module, Managing Cross-Border Cases. We will devote two sessions to the European Unions insolvency regulation that co-ordinates insolvency proceedings pending in EU nations. Four sessions will analyze chapter 15 of the U.S. Bankruptcy Code. ,Chapter 15 is based upon the Model Law on Cross-Border Insolvency promulgated by UNCITRL (United Nations Commission on International Trade Law). Chapter 15, which is in many important respects similar to the EU regulation, provides a mechanism by which U.S. courts can be accessed by foreign representatives charged with the administration of insolvency proceedings pending in other countries. If the foreign insolvency proceeding satisfies the requirements for recognition under chapter 15, litigation against the debtor can be stayed, U.S. business operations can be continued, information can be gathered, and assets can be collected and administered-all in aid of the administration of the foreign insolvency proceeding. Chapter 15 also facilitates cooperation among courts in countries in which related insolvency proceedings are pending. Our final session will focus on the use of U.S. Chapter 11 by foreign entities.