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United States

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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…

Introduction The United States District Court for the Southern District of New York recently upheld a bankruptcy court decision that demonstrates the importance of meaningfully disclosing to a bankruptcy court and parties in interest any material modifications to an agreement for the purchase of assets in a bankruptcy.  Though the district court focused on the core contractual dispute at issue, the underlying bankruptcy court’s bench ruling shined a light on the importance of meaningful disclosure…