Market Intelligence

This issue of Business Restructuring Review examines critical developments in cross-border insolvency, including groundbreaking rulings on Chapter 15 enforcement of UK restructuring plans and Canadian reverse vesting orders. The publication also analyzes significant decisions on bankruptcy appellant standing, claim subordination, and the enforceability of gatekeeping provisions in confirmed Chapter 11 plans.

Explore comprehensive bankruptcy and creditors' rights resources from Scarinci Hollenbeck, including client alerts on Subchapter V debt limits, tariff response strategies for distressed businesses, and recent case victories involving discharge objections. Discover how evolving bankruptcy trends and legal developments impact businesses, creditors, and individuals navigating financial distress.

U.S. bankruptcy courts are increasingly recognizing Canadian reverse vesting orders under Chapter 15, despite their lack of direct parallel in American bankruptcy law. How do principles of international comity enable enforcement of foreign restructuring mechanisms that differ fundamentally from domestic procedures? The Southern District of New York's recent ruling in Iovate Health Sciences provides critical guidance on the scope of discretionary relief available in cross-border insolvency cases.

A U.S. Bankruptcy Court recognized English restructuring proceedings and enforced court-sanctioned plans containing non-debtor releases, holding that using UK affiliates for restructuring—so-called "COMI tourism"—does not automatically preclude Chapter 15 recognition. The decision examines when cross-border restructurings warrant enforcement despite potential forum shopping concerns, emphasizing creditor protection, due process, and overwhelming creditor support as key factors in the court's dis

In asset-backed lending, the strength of the secured lender's position is only as reliable as the collateral securing it and the lender's ability to realize upon that collateral in the event of borrower distress.

The Eighth Circuit recently reaffirmed the restrictive "person aggrieved" test for bankruptcy appellate standing, ruling that an unsecured creditor who opted out of plan releases lacked standing to challenge them on appeal. A concurring opinion questioned whether this judicially-imposed standard, which predates the modern Bankruptcy Code, should continue to govern bankruptcy appeals.