A Massachusetts bankruptcy court denied Chapter 15 recognition of Russian insolvency proceedings against a U.S.-based individual represented by Kobre & Kim, underscoring that recognition is not automatic and depends on strict satisfaction of statutory requirements.
The decision highlights the limits of Chapter 15 relief, particularly where an individual has established ties to the U.S., offering practical guidance for both those resisting and pursuing cross-border insolvency recognition.
A wave of cross-border financial distress and insolvencies is rocking Brazilian companies – Brazilian airline GOL filed for Chapter 11 in the U.S. in January 2024.
Although international creditors have historically faced a Brazilian insolvency landscape that has created many practical impediments, things are changing.
A new Brazilian bankruptcy law, if combined with a multijurisdictional approach touching the U.S. and offshore, can give creditors additional leverage toward a favorable recovery.
The Americanas fraud has led a wave of insolvencies in Brazil, shaking the market.
This wave of financial distress has ensnared international creditors into the slow-moving Brazilian insolvency landscape.
However, new developments in Brazil – combined with an assertive cross-border strategy – can help creditors gain the upper hand and reach a quicker resolution.
Even when they leave their home countries for the United States, many individuals still get targeted by aggressive foreign insolvency proceedings that try to get recognized in U.S. courts.
However, as a recent U.S. Bankruptcy Court decision in favor of a Russian debtor has revealed, there are important steps targets can take to defend themselves.
By gathering evidence to show the corrupt nature of the foreign proceedings and one’s severed ties with the foreign country, targets can beat back these hostile campaigns.
