Finance and restructuring partner Andrew Kassner and counsel Joseph Argentina co-authored an article for The Legal Intelligencer titled “US Bankruptcy Court Recognizes Reverse Vesting Transaction and Nonconsensual Third-Party Releases in Canadian Bankruptcy Proceeding.”
The article summarizes a recent opinion issued by the U.S. Bankruptcy Court for the Southern District of New York in In re Iovate Health Sciences International, which recognized a reverse vesting transaction under Chapter 15 of the Bankruptcy Code that had been approved in a Canadian restructuring case.
The authors explain that as the costs of U.S. bankruptcy cases have increased, restructuring specialists have begun to look to foreign restructurings’ use of Chapter 15 as an ancillary proceeding to implement certain corporate restructurings.
“Now may be the time to become more acquainted with Chapter 15 and decisions being issued by the courts because clients with cross-border businesses will need advice in this area of bankruptcy,” the authors conclude.
