A Bark Louder Than Its Bite: Recognition Challenges Based On Chapter 15's "Foreign Proceeding" Definition

Chapter 15 of the U.S. Bankruptcy Code can be a very useful tool for foreign companies or individuals seeking bankruptcy relief in the U.S. Before obtaining any such relief though, a Chapter 15 debtor must first demonstrate that it is subject to a proceeding abroad that is entitled to "recognition" in the U.S. The recognition analysis often focuses on the locus of a foreign debtor's operations in order to determine if the proceeding pending abroad was commenced in the appropriate country. However, an issue that is equally important to the recognition analysis, but has received less attention until recently, is whether the proceeding is also a "foreign proceeding." The U.S. Bankruptcy Code defines this as a: