Bankruptcy Court Denies Stay of District Court Litigation in Chapter 15 Case

Finance and restructuring partner Andrew Kassner and counsel Joseph Argentina co-authored an article for The Legal Intelligencer titled “Bankruptcy Court Denies Stay of District Court Litigation in Chapter 15 Case.”

The article discusses how a recent decision from the U.S. Bankruptcy Court of the Southern District of New York addressed to what extent a bankruptcy court in a Chapter 15 bankruptcy case will enjoin litigation pending in another court. In that case, In re Multichain Foundation, the bankruptcy court denied a request by the debtor for an injunction of a class action pending in federal court to which the debtor was not a named party, but the debtor alleged affected administration of the debtor’s Chapter 15 estate.

The authors conclude that as the use of foreign proceedings and Chapter 15 becomes more common, restructuring practitioners should stay current on developing case law to effectively advise clients in cross-border insolvency matters.