Thursday, March 12, 2009

Samsun Logix files Chapter 15

Back on Feb. 9 I blogged about Sansun Logix in financial trouble.

Now they have filed Chapter 15 in New York.

Chapter 15 is a new chapter added to the Bankruptcy Code by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

Generally, a chapter 15 case is ancillary to a primary proceeding brought in another country, typically the debtor's home country. As an alternative, the debtor or a creditor may commence a full chapter 7 or chapter 11 case in the United States if the assets in the United States are sufficiently complex to merit a full-blown domestic bankruptcy case. 11 U.S.C. § 1520(c). In addition, under chapter 15 a U.S. court may authorize a trustee or other entity (including an examiner) to act in a foreign country on behalf of a U.S. bankruptcy estate. 11 U.S.C. § 1505.

Chapter 15 is something new.

It is for foreign companies (outside of the U.S.), so they have some protection when monies are transferred through U.S. This is particularly important because of the rule B attachments which were being filed.

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