Euroresource—Deals And Debt – April 2016

Recent Developments

Global—In In re Berau Capital Resources Pte Ltd, 540 B.R. 80 (Bankr. S.D.N.Y. 2015), the US Bankruptcy Court for the Southern District of New York recently held that a company without a place of business in the US was eligible to file a chapter 15 case by virtue of it being an obligor on US dollar-denominated debt issued under an indenture governed by New York law with a New York choice of forum clause. After the groundbreaking 2013 decision of the US Court of Appeals for the Second Circuit in Drawbridge Special Opportunities Fund LP v. Barnet (In re Barnet), 737 F.3d 238 (2d Cir. 2013), the courts were provided with little guidance as to what qualifies as US property for the purposes of eligibility and venue under chapter 15 of the US Bankruptcy Code. In Berau, the court ruled that a debtor that had been granted a Singapore debt moratorium was eligible to file a chapter 15 case in New York, even though the debtor did not have a place of business