In EMA GARP Fund v. Banro Corporation1 (the
"U.S. Action"), the U.S. District Court for the Southern
District of New York dismissed a lawsuit filed by shareholders of
an insolvent Canadian company, Banro Corporation
("Banro"), and its former CEO, finding that, under the
principles of comity, an approved Canadian plan of reorganization
released all claims against the defendants. In so ruling, the court
summarily rejected a longstanding principle that recognition of a
foreign bankruptcy proceeding under chapter 15 of the U.S.
Bankruptcy Code is a prerequisite to the enforcement by a U.S.
court of a judgment entered in a foreign bankruptcy proceeding.
The Banro Insolvency Proceeding
