Page 28 - US Bankruptcy Code Overview

• The Bankruptcy Court may refuse to take any action under chapter 15 “if the action would be manifestly contrary to the public policy of the United States.” 11 U.S.C. § 1506.
• Section 1506 is limited to “the most fundamental policies of the United States.”
• The Automatic Stay
- Stays any act against the debtor or to obtain possession of property of the estate or of property from the estate or to exercise control over property of the estate that could have been commenced pre-petition. 11 U.S.C. § 362(a).
- Upon recognition of a foreign main proceeding, stay applies automatically.
- Upon recognition of a foreign non-main proceeding, specific acts can be stayed.
• Transfer and Use of the Debtor’s Property
- Upon recognition of a foreign main proceeding, sections 363, 549 and 552 of the Bankruptcy Code automatically apply to the transfer of an interest of the foreign debtor’s property that is within the territorial jurisdiction of the U.S.
- Upon recognition of a foreign non-main proceeding, the Bankruptcy Court may entrust the foreign representative to administer the debtor’s assets located in the U.S.
• Power to Commence Domestic Proceedings
- Upon recognition of a foreign main proceeding, the foreign representative may commence either an involuntary or a voluntary bankruptcy proceeding, but only if the debtor has assets in the U.S.
- Upon recognition of a foreign non-main proceeding, the foreign representative may commence an involuntary bankruptcy proceeding
• Other Powers of the Foreign Representative
- Upon recognition, a foreign representative may:
• sue or be sued in a U.S. court, and apply directly to a U.S. court for relief;
• participate as a party in interest in any other bankruptcy case involving the foreign debtor;
• intervene in any proceeding in any U.S. court in which the foreign debtor is a party; and
• initiate actions in other bankruptcy cases involving the foreign debtor to avoid acts detrimental to creditors.
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