A Tale of Two Proceedings: US Bankruptcy Court Declines to Exercise Otherwise Proper Jurisdiction over Baha Mar Resort Insolvency Case
The US is often the chosen venue for reorganisation of a company with cross-border elements given the various tools available to the insolvent entity under the US Bankruptcy Code. Courts within the US have found proper jurisdiction under US law over companies with only minimal contacts with the US, or minimal property within US borders. Nonetheless, there are circumstances in which a US Bankruptcy Court may decline to exercise its jurisdiction, as highlighted in the recent US bankruptcy filing by the owners and operators of the Bahamian based ‘Baha Mar Resort’.
This article was first published in Insolvency Restructuring International, Vol 10 No 1, March 2016, and is reproduced by kind permission of the International Bar Association, London, UK. © International Bar Association