Debtors' Limited Financial Ties to US Sufficient to Satisfy Eligibility Requirements Under Section 109
In the face of financial distress, or a creditor exercising its remedies against a company's assets, there are significant benefits to filing a Chapter 11 case under the U.S. Bankruptcy Code regardless of where in the world the debtor company is headquartered or conducts its business.
March 28, 2022 at 11:50 AM
6 minute read
In the face of financial distress, or a creditor exercising its remedies against a company's assets, there are significant benefits to filing a Chapter 11 case under the U.S. Bankruptcy Code regardless of where in the world the debtor company is headquartered or conducts its business. Among these benefits are the worldwide reach of the automatic stay under 11 U.S.C. Section 362(a), the ability of management to remain in control of the debtor company during the pendency of the bankruptcy case, and the lack of an insolvency requirement. Accordingly, the eligibility requirements to become a debtor under the Bankruptcy Code are of great interest for distressed foreign companies.
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