The Law Of International Insolvencies And Debt Restructurings

by Silkenat, James R.; Schmerler, Charles D.

• ISBN13: 9780379215342
• ISBN10: 0379215349
• Format: Hardcover
• Copyright: 2006-04-20
• Publisher: Oceana TM

Summary

During the past several years, there have been an unprecedented number of insolvencies and restructurings of multinational corporations, both inside and outside of traditional bankruptcy proceedings. The Law of International Insolvencies and Debt Restructurings is the first treatise to analyze the newly created doctrines of law and procedure that have developed as insolvencies and restructurings have become increasingly international in character and now frequently involve the laws of numerous jurisdictions. Leading attorneys address developments in bankruptcy and insolvency laws in the countries that have become the focal points for legal proceedings, including the United States, Mexico, England, Spain, Italy, Argentina, Brazil, China, France, Japan, and Canada. Essential topics in the law of international restructuring and insolvency are also explored in depth, including national legislation and procedures, treaties and cooperation agreements, sovereign debt litigation, and inter-creditor relationships. Coverage includes: Methods of restructuring multinational corporate and sovereign debt Judicial bankruptcy proceedings Rights of creditors Jurisdiction and venue European Council Regulations Choice of Law Dispute resolution Access by foreign parties to U.S. bankruptcy courts

Table of Contents

Foreword	xvii
Fernando Pombo
Acknowledgments	xxiii
About the Editors	xxv
About the Contributors	xxix
Introduction	xlv
Charles D. Schmerler
James R. Silkenat
PART I: COUNTRY-BY-COUNTRY GUIDE TO BANKRUPTCIES, INSOLVENCIES AND RESTRUCTURINGS
Argentina	3	(18)
Ricardo W. Beller
Martin Campbell
Country Overview	3	(1)
Securities and Priorities	4	(2)
Credit Collection Litigation Procedures	6	(2)
Restructuring and Insolvency Proceedings	8	(9)
Treatment of Foreign Creditors and International Treaties	17	(4)
Australia	21	(14)
Michael Hughes
Framework	21	(2)
In Court Procedures	23	(5)
Out of Court Restructuring	28	(4)
International Aspects	32	(3)
Bermuda	35	(20)
Jan Woloniecki
Kehinde George
Overview of Legislative Framework/Insolvency Jurisdiction of the Bermuda Courts	35	(1)
Protection of Creditors' Rights	36	(2)
Voluntary Liquidations	38	(1)
Compulsory/Involuntary Liquidations	38	(1)
Voluntary Reorganizations	39	(3)
Liquidation Procedures	42	(3)
Priority of Claims	45	(1)
Voidable Transactions	46	(1)
Liabilities of Directors and Officers	47	(1)
Special Provisions Relating to Insolvency of Insurance/Reinsurance Companies	48	(4)
International Cases	52	(1)
Legislative Reform	53	(2)
Brazil	55	(18)
Ordelio Azevedo Sette
Juliano Battella Gotlib
Introduction	55	(1)
Main Guarantee Mechanisms in the Brazilian Law	56	(2)
The Commercial Insolvency	58	(1)
The Historic Evolution of the Bankruptcy Institute in Brazil	59	(2)
The New Bankruptcy Law	61	(7)
Treaties and International Conventions	68	(1)
Relevant Practical Aspects of the Bankruptcy Law for the Foreign Creditor	69	(2)
Conclusion	71	(2)
Canada	73	(34)
Joseph Marin
Jane Dietrich
Overview of Canadian Bankruptcy and Insolvency Legislation	73	(1)
Qualifications under Canadian Insolvency, Bankruptcy and Restructuring Legislation	74	(1)
Frequency of Business Insolvencies in Canada	74	(1)
Benefits of the Canadian Non-Codified System	74	(2)
Informal Debt Restructuring	76	(1)
Restructuring and Liquidation Options under Canadian Insolvency Law	76	(3)
Unsecured Creditors' Rights and Remedies	79	(2)
Rights and Remedies of Secured Creditors	81	(9)
Overview of Canadian Restructuring Proceedings	90	(8)
Corporate Directors and Officers in Canadian Restructuring Proceedings	98	(1)
International Insolvencies	99	(1)
Postscript---Reform of Canadian Insolvency, Bankruptcy and Restructuring Legislation	100	(7)
Channel Islands	107	(20)
Anthony Dessain
Craig Swart
Viscount Michael Wilkins
Introduction	107	(1)
Sources of Jersey Law	108	(1)
Taking Security	109	(1)
Corporate Restructuring and Debtor Protection	110	(3)
Insolvency Procedures	113	(12)
Summary	125	(2)
China	127	(16)
Adam Li
The Roadmap of the Insolvency Law	127	(2)
The Key Components of Chinese Bankruptcy Law	129	(3)
The Problems of the Current Bankruptcy Practice in China	132	(4)
Curbing the Problems	136	(2)
Practical Tips	138	(5)
France	143	(18)
Jean-Michel Lucheux
Olivier Puech
Preliminarily: Competence of the Courts	145	(1)
The Bankruptcy Act 2005-845: Strengthening Prevention	145	(5)
The New Procedure for Addressing Difficulties	150	(11)
Germany	161	(26)
Eberhard Braun
Annerose Tashiro
Introduction: Scope and Statutes of the German Bankruptcy/Insolvency Law	161	(9)
Litigation and Out-of-Court Proceedings, Out-of-Court Restructurings	170	(2)
International Treaties and Protocols and Treatment of Foreign Creditors	172	(2)
Autonomous German International Insolvency Law	174	(4)
The European Regulation (1346/2000) and the Directives (2001/24 EC and 2001/17/EC)	178	(2)
Plan of Reorganization vs Liquidation	180	(7)
India	187	(30)
Cyril Shroff
Overview of Indian Insolvency Regime	187	(2)
Insolvency Proceedings	189	(8)
Corporate Rescue Processes	197	(6)
Out of Court Restructurings	203	(4)
Creditors' Rights and Remedies	207	(5)
Cross Border Insolvencies	212	(1)
Drawbacks of the Indian Insolvency and Restructuring Regime and Reform Measures	213	(3)
Conclusion	216	(1)
Ireland	217	(20)
William Day
Introduction	217	(1)
Enforcement of Claims by Secured Creditors	217	(3)
Liquidation	220	(1)
Creditors' Voluntary Liquidation	220	(2)
Official or Compulsory Winding Up	222	(3)
Priority of Payments	225	(1)
Corporate Rescue	226	(1)
Examinerships	227	(1)
Content of Petition	228	(1)
Examiner's Duties and Powers	229	(1)
Priority of Expenses	230	(1)
The Position of Guarantors in Examinership	230	(1)
Informal Restructuring	231	(1)
Limited Liability	231	(2)
Remedies Available to Swell Assets	233	(1)
Fraudulent Preference	233	(1)
Fraudulent Trading	233	(1)
Reckless Trading	233	(1)
Obligations of Directors	234	(1)
Litigation for the Enforcement of Claims	234	(3)
Israel	237	(20)
Paul H. Baris
Aaron Jaffe
Pre-Bankruptcy Claims and Enforcement	237	(8)
Liquidation	245	(5)
Reorganization and Creditor Protection Procedures	250	(3)
Multinational Insolvency Proceedings	253	(4)
Italy	257	(22)
Antonio Auricchio
Giovanni Nardulli
Legal Framework	257	(1)
Overview of Italian Insolvency Procedures	258	(12)
Protection Available for Secured/Unsecured Creditors and Priority	270	(2)
New Money	272	(1)
Claw-Back Actions or Avoidance Rules	273	(2)
Agreements for the Restructuring of Debts	275	(1)
International Issues and the EU Regulation No. 1346/2000 on Insolvency Proceedings	275	(1)
Problems Arising from Italian Insolvency Law and Proposed Legislative Changes	276	(1)
Insolvency and M&A Opportunities	277	(2)
Japan	279	(24)
Yoshikazu Sugino
Statutory Insolvency Procedures	279	(16)
Out-of-Court Restructurings	295	(4)
Foreign Insolvency Proceedings	299	(4)
Mexico	303	(32)
Jose Raz Guzman
Background	303	(4)
Applicable Law	307	(1)
Jurisdiction	308	(1)
Entities Subject to the Bankruptcy Law	308	(1)
Insolvency Proceeding	309	(1)
Insolvency Petition	310	(2)
Inspection by Verifier	312	(1)
Insolvency Judgment	313	(1)
Legal Effects of Insolvency Proceedings	314	(8)
Recognition of Claims; Ranking	322	(3)
Restructuring Plan	325	(2)
Fraudulent Conveyance	327	(2)
Liquidation Phase	329	(1)
Special Proceedings	330	(1)
International Insolvencies	331	(1)
Criminal Sanctions	332	(3)
The Netherlands	335	(16)
Sijmen de Ranitz
Lucas Kortmann
Introduction	335	(1)
Formal Corporate Rescue (Restructuring) Process: Suspension of Payments	336	(5)
Informal Corporate Rescue (Restructuring) Process	341	(1)
Formal Corporate Liquidation Process: Bankruptcy	342	(7)
New Bankruptcy Act	349	(1)
International Aspects of Dutch Insolvency Law	349	(2)
Russia	351	(18)
Peter Barenboim
Natalia Merkulova
Scope and Status of National Bankruptcy/Insolvency Law	351	(1)
Protections Available for Debtors and Creditors (Secured/Unsecured)	352	(7)
Litigation and In-Court Proceedings	359	(4)
Out-of-Court Restructurings	363	(1)
International Treaties and Protocols and Treatment of Foreign Creditors	363	(1)
Plans Reorganization vs. Liquidation	363	(6)
Spain	369	(12)
Rafael Sebastian
Fernando Calbacho
Single Procedure	369	(1)
Ranking of Creditors	370	(3)
Effects of the Insolvency Proceedings on Contractual Agreements	373	(2)
Retroactivity Period	375	(1)
Re-instatement of Facility Agreements	375	(1)
Insolvency of Corporate Groups	376	(1)
Out of Court Composition Agreements	377	(1)
Insolvency Procedures Involving a Foreign Element	377	(1)
Termination of the Insolvency Proceedings	378	(1)
Conclusion	378	(3)
Sweden	381	(6)
Rolf Aabjoernsson
Bankruptcies	381	(2)
Restructuring	383	(1)
Secured Creditors	383	(1)
Litigation	384	(1)
Personal Liability for Directors and Officers	384	(1)
Proposed Reforms	384	(1)
International Cases	385	(2)
United Kingdom	387	(22)
Peter Manning
Robin Henry
Introduction	387	(1)
Corporate Insolvency and Rescue Procedures	388	(3)
Receivership	391	(3)
Administration	394	(5)
Liquidation (Winding-Up)	399	(1)
Invalidating Provisions of the Insolvency Act	400	(4)
International Issues	404	(1)
Cross-Border Insolvencies Involving Jurisdictions Within Europe	404	(2)
Impact of the EU Regulation	406	(1)
Cross-Border Insolvencies Involving Jurisdictions Outside Europe	406	(1)
U.K./U.S. Cooperation	407	(1)
UNCITRAL Model Law on Cross-Border Insolvency	407	(1)
Conclusion	408	(1)
United States	409	(22)
Hon. Elizabeth S. Stong
Introduction	409	(1)
The Legal Framework of a Bankruptcy Case	410	(3)
Protections Available to Debtors	413	(4)
Protections Available to Creditors	417	(2)
Litigation and In-Court Proceedings	419	(2)
Plans of Reorganization and Liquidation	421	(2)
Cross-Border Insolvency Provisions	423	(2)
Oversight of the Bankruptcy Process	425	(1)
Other Bankruptcy Code Chapters of Interest	426	(5)
PART II: SPECIAL ISSUES IN INTERNATIONAL BANKRUPTCIES, INSOLVENCIES AND RESTRUCTURINGS
Restructuring Sovereign Debt	431	(48)
Charles D. Schmerler
Introduction	431	(1)
The Structure of Sovereign Debt	432	(1)
The Nature of the Problem	433	(2)
The History of Sovereign Debt Restructuring	435	(7)
Sovereign Debt Litigation	442	(14)
Voluntary Restructuring Proposals	456	(10)
The Argentina Default	466	(3)
What Next?	469	(10)
Annex: Principles for Stable Capital Flows and Fair Debt Restructuring in Emerging Markets	473	(6)
Multinational Insolvency Forum Shopping	479	(22)
Anthony J. Smits
Ilia M. O'Hearn
Introduction	479	(3)
United States Cases on International Forum Shopping	482	(3)
The European Union Regulation on Insolvency Proceedings	485	(4)
The Model Law on Cross-Border Insolvency	489	(2)
New Chapter 15	491	(3)
``The Essence of COMI''---Lessons from the Regulation	494	(5)
Conclusion	499	(2)
U.S. Debt Markets Meet the Emerging Markets: Legal Challenges Faced by Cross-Border Lenders	501	(22)
Patrick Del Duca
Alan Feld
Cristian Vallejo
Conceptual Characteristics of Emerging Market Country Legal Regimes	503	(5)
Constraints of Emerging Market Country and U.S. Legal Systems Relevant to Cross Border Financial Market Debt Transactions and Strategies to Address Them	508	(9)
Cross-Cultural Communication Among Financial and Emerging Market Professionals	517	(4)
Profiting from Knowledgeable Risk Management at the Interface of Legal Systems	521	(2)
Relief Available to Foreign Debtors under the U.S. Bankruptcy Code	523	(28)
Gary Lee
Dina Gielchinsky
Introduction	523	(1)
Foreign Debtors' Access to Plenary Proceedings	524	(8)
Foreign Debtors' Access to Ancillary Proceedings	532	(13)
Concurrent Proceedings	545	(4)
Conclusion	549	(2)
The In-Court Voluntary Restructuring of Commercial Businesses in the United States	551	(16)
Heidi J. Sorvino
Beth N. Kibel
The Filing of a Bankruptcy Petition	552	(1)
The Automatic Stay	552	(1)
The Formation of a Committee of Unsecured Creditors	553	(2)
The Debtor's Schedules and the Filing of Proofs of Claims by Creditors	555	(1)
Decisions Made by the Debtor-in-Possession and Decisions That Require Bankruptcy Court Approval	556	(1)
Reasons a Voluntary Chapter 11 Reorganization Case May Get Dismissed or Converted to a Chapter 7 Liquidation Case	557	(1)
Cash Collateral	558	(1)
Debtor-in-Possession Financing	558	(1)
Adversary Proceedings	559	(1)
Standards for the Appointment of a Trustee or Examiner	559	(2)
Pre-Bankruptcy Transactions that May Be Avoidable	561	(1)
The Formulation and Approval of the Disclosure Statement and Plan of Reorganization	562	(2)
The Discharge	564	(1)
Conclusion	564	(3)
The EC Insolvency Regulation: European Cross-Border Insolvency	567	(108)
Michael Veder
Lucas Kortmann
Introduction	567	(1)
Goal and Scope of the IR	567	(2)
Main Proceedings	569	(7)
Territorial (Secondary) Proceedings	576	(2)
Recognition of Insolvency Proceedings	578	(1)
Uncitral Model Law on Cross-Border Insolvency	579	(4)
ANNEXES
Annex A Uncitral Model Law on Cross-Border Insolvency with Guide to Enactment	583	(64)
Annex B European Community Insolvency Regulation	647	(28)
INDEX
Index	675