NEWS ALERT: Is a foreign debtor in a Chapter 15 case subject to the eligibility requirements for a debtor under 11 U.S.C. § 109?  In an important decision, the Eleventh Circuit held that those eligibility requirements—requiring a person to reside, or have a domicile, a place of business, or property in the United States to be a debtor—do not apply to a debtor in a Chapter 15 case.  This ruling is of particular importance in the field of cross border insolvency as it permits the recognition of foreign insolvency proceedings in the United States irrespective of the foreign debtor’s ties with the United States. In asset recovery cases, recognition unlocks valuable tools to trace and recover assets, which tools remain available to foreign insolvency practitioners under this decision. Read the decision here or below, and the Law360 media coverage here or below.

Congratulations to Leyza B. Florin, Juan J. Mendoza, Christopher A. Noel, and the Sequor Law team for achieving this great result!