Kurt A. Mayr
The fifth article, Enforcing Prepackaged Restructurings of
Foreign Debtors Under the U.S. Bankruptcy Code, is authored by
Kurt A. Mayr. The article explores the various issues raised by
cross-boarder insolvencies and highlights the efficiency of
utilizing prepackaged restructurings in concurrent jurisdictions.
The author begins with a thorough analysis of U.S. bankruptcy
jurisdiction over a foreign debtor, as well as the benefits and
drawbacks of the U.S. prepack system. Next, the author examines the
function of chapter 15 as an aid to plenary insolvency proceedings
outside the United States. The author first reviews the various
types of relief available under a successful chapter 15 petition.
He then outlines multiple arguments a party-in-interest can make in
contesting the petition. Finally, the article concludes that
expedited restructurings may best be served by commencing
insolvency proceedings concurrently in the U.S. and in the debtor's
home country. In doing so, a foreign debtor increases the chances
of binding uncooperative foreign creditors to an expedited
restructuring, while at the same time allows the foreign debtor to
take advantage of chapter 11 relief, notably section 1145's
exemption to the registration requirements under U.S. securities
laws.