Bankruptcy and Insolvency

Bankruptcy and Insolvency

Sequor Law provides representation for clients in most aspects of bankruptcy and insolvency law, both in the United States and in connection with insolvencies based outside the US.

In US bankruptcies, Sequor Law provides representation of creditors and parties in interest in all aspects of the proceeding. Sequor Law regularly represents lenders in these cases including contested matters regarding cash collateral, valuation, stay relief motions and defenses, plan treatment, contested confirmations and competing plan proposals.  Sequor Law also represents defendants in avoidance litigation as well as creditors objecting to the dischargeability of debt.

In international insolvencies, Sequor Law represents fiduciaries appointed outside the US to oversee the reorganization or liquidation of foreign corporations or individuals in courts throughout the US. In particular, Sequor Law has filed more than 30 cases under Chapter 15 of the United States Bankruptcy Code, obtaining recognition of the foreign proceeding by the US Courts and utilizing those cases to obtain discovery; to litigate causes of action against US defendants; or to support reorganization efforts in the home jurisdiction. Sequor Law has handled Chapter 15 cases coming from many common law jurisdictions, including Antigua, Barbados, BVI, Canada, Cayman Islands, and UK, and from various civil law jurisdictions including Argentina, Austria, Brazil, Chile, Mexico, and Romania. In other instances, Sequor Law has served as lead counsel on recognition cases filed in the courts of Australia, Colombia, the Isle of Man, Switzerland and the United Kingdom.

For a full listing of our Chapter 15 cases and recognition cases outside the US, click here.

Representative Cases

Click the “+” sign to expand and view our representative cases:

World’s Second Largest Ponzi Scheme in History

Sequor Law represents the Joint Liquidators for Stanford International Bank, Ltd.(“SIB”) (in Liquidation). SIB, a bank located in Antigua, which primarily sold certificates of deposit, played a key part in a worldwide Ponzi scheme, the second largest one in history, perpetrated by Robert Allen Stanford, with losses to depositors estimated to exceed US$4.4 billion. SIB was liquidated in March 2009 and since May 12, 2011, when Mr. Marcus Wide and Mr. Hugh Dickson from Grant Thornton were appointed as Joint Liquidators of the SIB estate in the liquidation proceeding in Antigua, Sequor Law has acted as co-general counsel along with counsel in the Caribbean for the Joint Liquidators in their global asset recovery efforts, which have included helping the estate to recover (a) US$3.2 million from Panama; (b) US$20 million from the United Kingdom; (c) freezing assets in Antigua & Barbuda valued at US$212 million; (d) launching a formal claim process; (e) claims related to approximately US$330 million in frozen assets at the request of the Department of Justice of the United States in Canada, Switzerland and the U.K.; (f) filing a case for damages valued at approximately US$5 billion against a bank in Canada; and (g) initiating efforts to recover a considerable amount of funds located in Colombia, from law firms and other financial institutions, among other things. Sequor Law also initiated an application for recognition under Chapter 15 of the U.S. Bankruptcy Code on behalf of the Joint Liquidators in Dallas, Texas, which was approved, recognizing the procedure in Antigua as the secondary foreign proceeding and, recently, helped the U.S. Judicial Administrator, the SEC, the U.S. Department of Justice, along with the Joint Liquidators and others, to reach a global agreement and cross-border protocol.

First Chapter 15 Cross-Border Insolvency Case in Florida Involving Central American Banking Group

Represents Bancafe International Bank (in Liquidation) (“BIB”). In or around 2006, one of the major banking groups in Central America, Banco Cafeteros de Guatemala (“Bancafe”), which had operations in Central America and the Caribbean, failed. BIB, an affiliate of Bancafe was established according to the laws of Barbados with extensive operations in Guatemala and assets in the United States, and was placed under bankruptcy in Barbados. PricewaterhouseCoopers was named the custodian. The assets of the bank in the United States included a claim for US$200 million in the bankruptcy of REFCO in New York, which has resulted in a recovery exceeding US$54 million. In December 2006, Sequor Law, acting in representation of the custodian, filed the first Chapter 15 case in Florida under the Bankruptcy Code of the United States, achieving the recognition of the liquidation proceeding in Barbados as the main foreign proceeding. A broad discovery of evidence in the United States ensued and it is still ongoing, as well as discovery and continuous tracking of other assets potentially recoverable for the estate. An account in New York was also identified from which approximately US$1 million were recovered.

Chapter 15 Case Stemming from One of the Largest Banking Failures in Brazilian History

Represents the judicial administrator of Banco Santos, S.A. (in Liquidation). The case followed an investigation that revealed that an executive of the bank had perpetrated a theft of more than US$1 billion through a complex scheme that involved several countries. Sequor Law initiated an insolvency proceeding under Chapter 15 of the U.S. Bankruptcy Code. Through the Chapter 15 action and corresponding recognition, Dr. Vanio Aguiar obtained valuable evidence located in the United States and around the world, which helped his efforts, including the recovery of works of art valued at millions of dollars. Additionally, several millions of dollars were recovered in an ancillary case against third parties through a confidential agreement.

Brazilian Cross-Border Insolvency Case with More than 300 Related Debtors

Represents Petroforte Brasileiro de Petroleo Ltda. (“Petroforte”) (in Liquidation). Petroforte, part of a great group of commercial companies in Brazil, failed, was declared insolvent, and it is subject to an insolvency proceeding in Brazil. A Judicial Administrator was appointed to supervise Petroforte’s businesses, and the bankruptcy of the same has been extended to more than 300 entities and individuals. Sequor Law filed an application in the United States requesting deposition testimony and the production of evidence, and analogous proceedings were pursued in other countries in the Caribbean and Central America. The Firm was able to obtain important deposition testimony and collect documentary evidence to assist the Judicial Administrator with his efforts in Brazil. Depending upon the outcome of certain proceedings in Brazil, additional litigation in several jurisdictions, including in the United States through an application under Chapter 15 of the Bankruptcy Law may result in the identify and recover additional assets.