Chapter 15 – Foreign Bankruptcy Recognition and Asset Recovery

Marks & Sokolov attorneys are recognized leaders in Chapter 15 bankruptcy proceedings used to recognize foreign bankruptcy proceedings and protect foreign debtor assets located in the U.S.  Under Chapter 15, the duly appointed representative of a foreign debtor may file a petition in a U.S. bankruptcy court seeking “recognition” of a “foreign proceeding.” After recognition, Chapter 15 can be utilized to take discovery, stay creditor enforcement actions, freeze assets, take control of foreign debtor assets in the U.S. and pursue avoidance actions under foreign law or state law to recover property transferred before the Chapter 15 case was filed.

In support of Chapter 15 matters, our discovery team assists clients with record collection, management and e-discovery issues. Leveraging the latest document management technology, we collaborate with our clients to create tailored and cost-efficient plans to fulfill discovery responsibilities.

SIGNIFICANT MATTERS INCLUDE:

• In the Southern District of New York, obtained an order under Chapter 15 of the U.S. Bankruptcy Code recognizing a Russian insolvency proceeding of a Russian individual, who owns real estate in Manhattan worth over $15 million, as a “main proceeding” in the U.S. Bankruptcy Court, and allowing collection of U.S. based assets. In addition, we obtained an order freezing the Russian debtor’s funds held in U.S. banks.

• Represented the Russian State Corporation “Deposit Insurance Agency,” the trustee and the foreign representative of the Foreign Economic Industrial Bank Limited “Vneshprombank” Ltd. and obtained an order under Chapter 15 of the U.S. Bankruptcy Code recognizing a Russian insolvency proceeding as a “main proceeding” in the U.S. Bankruptcy Court and allowing collection of U.S. based assets. In re Foreign Econ. Indus. Bank, 607 B.R. 160 (Bankr. S.D.N.Y. 2019).