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98 Am. Bankr. L.J. 1 (2024)

handle is hein.journals/ambank98 and id is 1 raw text is: The International Two-Step: Recognizing Domestic Chapter 15 Reorganizations by Bruce A. Markelf Synopsis Chapter 11 has a history as the gold standard for corporate reorganizations. Although still relevant and vibrant, chapter 11 is facmng increased competition from revised foreign laws that authorize reorganization tools not available in the United States, and at a cost many think is far less than ifthe debtor chose chapter 11 as its reorganization regime. The choice between domestic chapter 11 and foreign regimes may not be as stark as it might seem. The United States Bankruptcy Code contamns provisions regardmng recognition of foreign insolvency proceedmngs. In particular, chapter 15 ofthe United States Bankruptcy Code directs United States courts to recognize qualiyng foreign insolvency proceedings. Recognition, mn turn, is mtended to give local effect to reliefgranted abroad, essentially deputizimg United States courts as auxiliaries offoreign courts, empowered to enforce these foreign decrees. This enforcement takes place even ifthe foreign proceedng adversely affects domestic creditors and even if the foreign proceedmng employed restructuring methods not generally permitted by United States law. Now that other nations' laws may be more attractive to debtors, a conundrum arises: Should United States courts permit domestic debtors to restructure abroad and then use chapter 15 to enforce thatforeign decree m the United States, thus servmng the mternationalist goals ofchapter 15? Or should courts mnsist that domestic entities can onlyrestructure locally, thus * Professor of Bankruptcy Law and Practice, and Edward Avery Harriman Lecturer in Law, Northwestern Pritzker School of Law. A much earlier and more limited version of this article is published as Domestic Entities as Chapter 15 Debtors: A Possibility?, Bankr. L. Letter, July 2021. Since then, I have expanded greatly the arguments set forth in that article and was privileged to present it at the Cornell Law School while visiting there, and at the London School of Economics (for which I thank Professor Sarah Paterson for the invitation). I thank the participants at those presentations for their helpful comments, all of which made this a better article. I also wish to thank Kaitlan Donahue and Channah Klapper for their research assistance, and Dan Glosband for his encouragement and counsel. All errors which remain, however, are mine alone. 1

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