Cross-border bankruptcy filers have a clearer path to import restructuring tools into the US after a Delaware federal judge reinforced that foreign proceedings aren’t required to adhere to domestic laws.
US courts have rejected government agencies’ arguments that the US Supreme Court’s 2024 Harrington v. Purdue Pharma ruling limiting certain liability releases applies to foreign restructuring and insolvency schemes seeking recognition under US bankruptcy law’s Chapter 15.
The Purdue decision prohibited companies from using Chapter 11 to strip creditors of legal claims against company insiders and nonbankrupt entities.
Chief Judge Colm F. Connolly of the US District Court for the ...
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