NY Court Quells Chapter 15 Doubts Raised by Hong Kong Judge

Global restructuring professionals are breathing a sigh of relief after a judge reaffirmed that a foreign restructuring can discharge debt governed by New York law—a common element of global insolvencies recently brought into question by a Hong Kong judge.

Judge Martin Glenn of the US Bankruptcy Court for the Southern District in July said his court would recognize and enforce, under Chapter 15 of US bankruptcy law, Chinese property developer Modern Land China Co.'s Cayman Islands court order that restructures $1.34 billion in debt governed by New York law. In doing so, Glenn helped to allay concerns raised in June ...