Canadian Cases Under Chapter 15 of the US Bankruptcy Code
|Lawyer||Jay A. Carfagnini|
Article originally published in the 2009 edition of Euromoney's Guide to the World's Leading Insolvency and Restructuring Lawyers
Excerpt from "Canadian Cases Under Chapter 15 of the US Bankruptcy Code":
Effective October 17 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) ushered in sweeping reforms to the US Bankruptcy Code, including fundamentally altering the legal regime governing the recognition in the US of foreign insolvency proceedings on an ancillary basis.
Since its enactment in 1978, Section 304 of the US Bankruptcy Code had governed the commencement of ancillary bankruptcy proceedings in the US. Section 304 permitted a representative of a debtor in a foreign bankruptcy or insolvency proceeding to commence an ancillary proceeding in the US, typically with the principal objective of obtaining a stay of proceedings in the US. Following the passage of BAPCPA, Section 304 was eliminated and replaced with the far more comprehensive provisions of Chapter 15 of the US Bankruptcy Code. Chapter 15 reflected the US government’s adoption of the Model Law on Cross-Border Insolvency prepared by the United Nations Commission on International Trade Law (UNCITRAL). Although the principal purpose of Chapter 15 is unchanged from the days of Section 304 applications – namely, to facility the commencement of ancillary insolvency proceedings in the US, principally for the purpose of obtaining a stay of proceedings – the changes effected by BAPCPA, both substantively and procedurally, are significant
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