Ch. 15 Ruling May Offer Path to Ch. 11 Workaround
Bankruptcy attorney Arthur Rosenburg authored a Law360 article about a recent ruling by U.S. Bankruptcy Judge Michael E. Wiles that recognized an English scheme of arrangement under Chapter 15 of the U.S. Bankruptcy Code. The decision highlights how multinational restructurings can leverage creative legal structures, such as the formation of a United Kingdom subsidiary, to achieve court-approved, single-class creditor agreements that are difficult under traditional Chapter 11 proceedings. The article explores how this ruling provides a potential pathway for future international restructurings, balancing concerns about process manipulation with benefits of enhanced creditor recoveries and procedural fairness.
Mr. Rosenberg also authored a Holland & Knight alert on this topic.