KRyS Global Joins TMA Panel on Chapter 15
Chapter 15 of the U.S Bankruptcy Code turned 15 earlier this year. To help commemorate the occasion our own James Leda, Managing Director of KRyS Global’s U.S. office, recently served as a panelist on the Turnround Management Association (TMA) webinar titled: “Chapter 15 – The Next Wave of Opportunities for U.S. Restructuring Professionals?”
The panel began by addressing the “nuts and bolts” of the Chapter 15 process including requirements to commence a case (COMI considerations, foreign main/non-main jurisdiction, etc.), immediately available provisional relief, key players in the process, and differences between Chapter 11 and Chapter 15 of the U.S. Bankruptcy Code.
The discussion then pivoted to practical applications of Chapter 15, including several case studies. Two matters where KRyS Global served as Liquidator, Fairfield Sentry Limited and Sphinx Group, were recognized as precedent setting cases.
The webinar ended with the panelists prognosticating what lies ahead for Chapter 15. It was concluded that the increased pace of globalization, coupled with Chapter 15’s established track record, is likely to lead to an increase in applications going forward as more and more foreign representatives look to the U.S. Bankruptcy Courts for assistance.
Global financial distress caused by the pandemic was also highlighted as a potential contributor to increased Chapter 15 applications over the next few years. The theory articulated was, as liquidity dries up and more insolvency proceedings are initiated globally, it stands to reason that the ensuing investigations by administrators, liquidators, receivers, etc. will uncover more evidence of fraud and malfeasance. This could drive an increase in Chapter 15 applications as fiduciaries seek to pursue discovery, and ultimately litigation, as part of their efforts to locate and recover assets for the benefit of victims and creditors.
For more information regarding how KRyS Global can assist with foreign recognition matters, including Chapter 15, please feel free to contact James or any of the professionals at KRyS Global by visiting https://www.krys-global.com/team/.
For more information about the webinar and other TMA events please visit the TMA “Learning Link” website at https://turnaround.org/tma-learning-link