Regional news: North America

Austrian bank can’t escape General Motors clawback suit, says New York court

The Vienna-based winding-down vehicle of an Austrian bank cannot use jurisdictional arguments to escape a lawsuit in which a General Motors liquidation trust is seeking to recover repayments of a £1.5 billion loan, a New York bankruptcy court has ruled.

21 February 2017

Liberian Chapter 11 debtor found to be “US person” for Iran sanctions purposes

A Liberian-incorporated debtor with no business operations in the US counted as a “US person” while in Texas bankruptcy proceedings for the purpose of respecting US sanctions against Iran, the US Office of Foreign Assets Control (OFAC) has found.

20 February 2017

New York court rejects new pari passu challenge after Argentine holdout settlement

A New York court has declined to reissue an injunction that prevented Argentina from making payments on restructured sovereign bonds unless it also paid holdouts, saying it was a product of unique circumstances that no longer exist in light of a multibillion-dollar settlement last year.

20 February 2017

New York court grants Russian bank Chapter 15 protection, dismisses “national security” arguments

A New York judge has recognised the Russian insolvency proceedings of one of the country’s biggest banks, despite arguments from opponents that aiding Russian authorities in administering the case stands at odds with the US stance on the Russian annexation of Crimea.

17 February 2017

Hong Kong court sanctions Lehman scheme to avoid repeat of “Waterfall” litigation

The liquidators of three Hong Kong-based Lehman Brothers entities have gained court approval for schemes of arrangement to deal with the distribution of surplus from the estates, potentially avoiding similar protracted litigation to that of their European counterparts in London.

15 February 2017

Kobre & Kim poaches partner from Dentons in New York

Global disputes and investigations firm Kobre & Kim has added the co-chair of Dentons’ US restructuring, insolvency and bankruptcy practice Farrington Yates as a partner in its New York bankruptcy and debtor-creditor disputes team.

14 February 2017

Community round-up: new UK moves, new US judge

A London silk has rejoined his old set after a brief sojourn, and a new US bankruptcy judge has joined the bench, while UK firms have made regional lateral hires and two firms in Dallas have pooled their restructuring expertise in a merger in recent weeks.

14 February 2017

ABI Caribbean Insolvency Symposium: a view from the bench

The American Bankruptcy Institute met in Grand Cayman last week, hosting a roundtable discussion featuring some of the US’s leading bankruptcy jurists.

14 February 2017

Avoidance in US bankruptcy not extraterritorial, affirms New York court

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.

13 February 2017

US court rejects emergency appeal by Peabody creditors

A US appeals court has rejected an emergency appeal filed by an ad hoc committee of non-consenting creditors against global coal company Peabody’s Chapter 11 reorganisation plan, citing a lack of jurisdiction.

13 February 2017

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