Reorganization by Foreign Debtors in the US and UK

Nava Hazan and Susan Kelly have written for the October newsletter of the American Bankruptcy Institute’s Business Reorganization committee about how the UK and US have become the two main jurisdictions where debtors outside of such jurisdictions (foreign debtors) have been able to successfully restructure their businesses, due to the flexibility of the UK and US legal systems and their shared focus on reorganization as opposed to liquidation. The article is in two parts. The first part is the UK perspective and looks at the use of the Scheme of Arrangement under the Companies Act 2006. The second part will look at the US and the use of chapter 15 of the US Bankruptcy Code.