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An Introduction to Chapter 15 of the Bankruptcy Code

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Page 1: An Introduction to Chapter 15 of the Bankruptcy Code
Page 2: An Introduction to Chapter 15 of the Bankruptcy Code

Suzzanne Uhland, a partner in the firm of O'Melveny & Myers LLP, has served as lead counsel in a number of landmark Chapter 15 bankruptcy cases. For example, as counsel to Suntech Power Holdings, Suzzanne Uhland secured court approval to proceed with trial in New York, earning vindication for her client in the country's first contested Chapter 15 case.

Added to the US Bankruptcy Code via the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Chapter 15 draws its content from the Model Law on Cross-Border Insolvency propagated by the United Nations Commission on International Trade Law.

Page 3: An Introduction to Chapter 15 of the Bankruptcy Code

The law serves to provide structure and regulation to insolvency matters, with a scope of interest that extends beyond domestic borders. In effect, the legislation enables US courts to acknowledge bankruptcy proceedings in other countries, thus expanding the scope of protection for US debtors and creditors.

A Chapter 15 case is most often supplemental to a foreign bankruptcy proceeding.

Page 4: An Introduction to Chapter 15 of the Bankruptcy Code

Processes begin when a “foreign representative” files for recognition, which then allows the representative to gain access to the US court system. If the US assets in the case prove to be of sufficient complexity, a US-based creditor or debtor may also choose to file a Chapter 7 or Chapter 11 case domestically. In either case, the party involved stateside may designate another individual to oversee interests during proceedings abroad.