Publications February 22, 2011

Curtis Restructuring Partners Publish Article in the NYLJ on Recovering Transfers in Bankruptcy

Partners L. P. Harrison 3rd, Jerrold L. Bregman and Timothy A. Barnes of Curtis' Restructuring and Insolvency practice group wrote an article, 'Taking It Back -- Recovering Transfers in Bankruptcy' that was published in the February 10, 2011 edition of The New York Law Journal's special GCNY (General Counsel New York) section.

The article focused on strategies that foreign debtors, and their duly recognized representatives, may employ, under Chapters 15, 7 and 11 of the Bankruptcy Code, to avoid and recover pre-bankruptcy transfers, such as fraudulent conveyances and preferences.

Chapter 15 covers cross-border cases with an emphasis on facilitating the restructuring and liquidation of foreign estates through ancillary proceedings in the U.S. When Chapter 15 started in 2005, it was thought that foreign representatives may not come to the United States to recoup assets pursuant to the avoidance actions provisions of the U.S. Bankruptcy Code. However, recent cases have seemingly opened the door to allow a foreign representative to use U.S. avoidance provisions in conjunction with chapter 7 and chapter 11 cases.

The article covers some of those cases and explores the text of relevant sections of the Bankruptcy Code.