Regional news: North America
Foreign banks and investors accused of “aiding” FTX fraud in Miami suit
An FTX customer has launched a class-action in Florida against several prominent US and foreign entities – including Singapore’s state-owned wealth fund Temasek Holdings and Japan’s Softbank – who he accuses of “aiding and abetting” the collapsed crypto group’s alleged US$8 billion Ponzi scheme.
23 February 2023
Fraudulent debt can’t be discharged through bankruptcy, US Supreme Court rules
A debt obtained by fraud cannot be discharged through the US bankruptcy system, the country’s highest court has ruled, even if the debtor is not themselves culpable for the fraudulent act.
22 February 2023
Texas two-step providing “windfall” for bankruptcy professionals, claimants say
Citing a recent Third Circuit decision rejecting Johnson & Johnson’s Texas two-step bankruptcy, asbestos claimants have moved to dismiss a long-running Chapter 11 case filed by a subsidiary of US multinational Koch Industries.
21 February 2023
Estonian trustee secures Ch15 recognition to investigate alleged fraud
The Estonian trustee of an allegedly fraudulent crowdfunding platform has secured recognition of his appointment in Miami to help him track down assets and funds he believes are held in the US.
20 February 2023
Cayman fund liquidators seek "efficient cooperation" with New York court
The joint official liquidators of three Cayman-incorporated investment funds are seeking recognition in New York so they can gain control over US assets and support cooperation between US and Cayman courts.
16 February 2023
Bahamian and US courts agree FTX recognition orders, examiner bid rejected
Courts in The Bahamas and the US have agreed to recognise FTX’s insolvency processes in each other’s jurisdictions, while the US Trustee has failed in a bid to appoint an independent examiner to investigate allegations of fraud by the crypto group.
15 February 2023
King & Spalding continues growth with Chicago hire
On the back of recent hires in the US and the UK, King & Spalding has added a partner from Katten Muchin Rosenman in Chicago, who brings with him experience working on the novel cross-border restructuring of Chinese solar panel manufacturer LDK Solar.
14 February 2023
When is a Cayman Islands liquidation not a foreign proceeding?
A Cayman Islands liquidation under Section 92(e) of the Companies Act is not necessarily a foreign proceeding that can be recognised under Chapter 15 of the US Bankruptcy Code, warn Norton Rose Fulbright senior counsel Francisco Vazquez in New York and associate Michael Berthiaume in Dallas, as they examine a recent ruling from the Southern District of New York.
14 February 2023
Hogan Lovells advising as US investors' agent pursues Ukrainian grain terminal bankruptcy
Hogan Lovells is advising a security trustee that has filed a bankruptcy petition against a Ukrainian grain terminal operator on behalf of a pair of US investors, after successfully obtaining a worldwide freezing order from an English court against its owners last month.
13 February 2023
Bed Bath & Beyond secures protection in Canada after last-minute US deal
After buying time to restructure its US business with an offering of so-called “death spiral convertibles” to institutional investors last week, American homeware chain Bed Bath & Beyond has placed its Canadian arm into bankruptcy.
13 February 2023