In brief This alert considers recent developments in the US Chapter 15 aspect of cross-border insolvencies that may lead to less “COMI-shifting” — a debtor establishing its COMI (center of main interest) in a new jurisdiction where it decides to file its insolvency proceeding. COMI-shifting can be expensive and time-consuming. Companies seeking recognition of foreign proceedings under Chapter 15 of the US Bankruptcy Code may find it easier to obtain broad relief, even if the…
On 10 June 2021, the Singapore Court of Appeal published its decision in Sun Electric Power Pte Ltd v. RCMA Asia Pte Ltd. [2021] SGCA 60, which provided important clarifications to the law in Singapore winding-up proceedings. In particular, the Court of Appeal held that in winding-up proceedings, the cash flow test, as opposed to the balance sheet test, should be the sole and determinative test to prove to the court that the company is unable to…