Florida District Court: Foreign Debtor Need Not Have U.S. Residence, Assets, or Place of Business to Be Eligible for Chapter 15 Recognition

Summary

This article discusses a recent decision addressing the disagreement over whether a foreign bankruptcy case can be recognized under Chapter 15 of the Bankruptcy Code if the foreign debtor does not reside or have assets or a place of business in the U.S. In 2013, the U.S. Court of Appeals for the Second Circuit staked out its position on this issue in Drawbridge Special Opportunities Fund LP v. Barnet (In re Barnet), 737 F.3d 238 (2d Cir. 2013), ruling that the provision of the Bankruptcy Code requiring U.S. residency, assets, or a place of business applies in Chapter 15 cases as well as cases filed under other chapters.