The trend of complex cross-border restructurings is on the rise as economies around the world become more interconnected. Many countries have developed advanced restructuring regimes to provide distressed companies and lenders with alternatives to the U.S. chapter 11 bankruptcy process. This shift has led to an increase in chapter 15 filings under the U.S. Bankruptcy Code to seek recognition of foreign restructuring proceedings and related relief for assets in the United States.
While pairing a foreign restructuring proceeding with chapter 15 recognition offers benefits, it is essential to note that gaining access to chapter 15 relief is not automatic. Debtors seeking recognition for a foreign proceeding must navigate the complex requirements of the Bankruptcy Code and meet the legal standards of the foreign jurisdiction. Real case examples demonstrate the challenges that foreign representatives face in qualifying for chapter 15 relief.
The White Paper by Jones Day delves into these aspects and provides valuable insights into the intricacies of foreign main and nonmain recognition trends in restructuring. It emphasizes the importance of understanding both the U.S. legal framework and the foreign legal requirements to execute a successful restructuring plan. The examples cited in the paper shed light on the rigorous process that foreign representatives must undergo to secure chapter 15 relief.
In conclusion, the increasing trend of cross-border restructurings highlights the need for a comprehensive understanding of the legal landscape in both the U.S. and foreign jurisdictions. By exploring the nuances of chapter 15 recognition and foreign restructuring proceedings, companies can navigate the complexities of global restructuring efforts more effectively.
Jones Day’s White Paper serves as a valuable resource for those involved in international restructuring processes, offering practical insights and guidance on how to navigate the intricate legal requirements associated with foreign main and nonmain recognition trends. It underscores the importance of careful planning and strategic decision-making to achieve successful outcomes in today’s interconnected global economy.