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John J. Rapisardi, a partner at Cadwalader, Wickersham & Taft and an adjunct professor of law at Pace University School of Law, reviews a recent decision where the Bankruptcy Court recognized the voluntary winding up of an Australian company as a "foreign main proceeding," entitling the foreign debtor to certain protections of the U.S. Bankruptcy Code, even though no petition or application was filed with an Australian court by the company's Australian shareholders or its liquidators. Although this decision may seem counterintuitive to those familiar only with the judicial bankruptcy process under the Bankruptcy Code, the holding demonstrates both the commonalities and distinctions in the applicable law governing bankruptcy and insolvency in the United States and certain foreign jurisdictions.
May 14, 2009 at 12:00 AM
1 minute read
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