Global Restructuring Review - Cross-border restructuring and insolvency legal news, features and events

Avoidance in US bankruptcy not extraterritorial, affirms New York court

By Tom Rhys Davies

13 February 2017

Avoidance in US bankruptcy not extraterritorial, affirms New York court iStockphoto.com/slidezero_com

Avoidance provisions within the US Bankruptcy code were not intended to apply extraterritorially, a New York Judge has written in a decision that blocks a Chapter 7 trustee from recovering payments made to an Israeli law firm by a bankrupt US holdings company.