Overview of Chapter 15 Ancillary and Other Cross-Border Cases
![handle is hein.journals/ambank82 and id is 276 raw text is: Overview of Chapter 15 Ancillary and
Other Cross-Border Cases
by
Alesia Ranney-Marinelli*
Chapter 15, which incorporates most of the provisions of the United
Nations' Model Law on Cross-Border Insolvency (the Model Law),1 was
enacted as part of the Bankruptcy Abuse Prevention and Consumer Protec-
tion Act of 2005 (BAPCPA).2 It replaced former 11 U.S.C. § 304,3 which
had been enacted in 1978 to provide specific procedures by which a represen-
tative in a foreign bankruptcy proceeding could obtain relief in U.S. courts to
facilitate the foreign proceeding. Section 304 provide[d] for the first time a
bankruptcy remedy, in addition to comity, for dealing with issues related to
foreign insolvencies.4
While § 304 afforded bankruptcy courts substantial flexibility to fashion
remedies in order to foster principles of international comity and respect for
the judgments of other countries, it nevertheless was limited in scope.5 Filing
of a § 304 petition did not initiate a normal bankruptcy case, nor was it the
exclusive remedy for a foreign representative seeking the assistance of U.S.
courts.6 Thus, there was no centralized forum for addressing requests for
U.S. judicial relief in connection with foreign proceedings, and jurisprudence
developed on a case-by-case basis. Chapter 15 changes that, centralizing ini-
*Ms. Ranney-Marinelli is a partner in the Corporate Restructuring Department of Skadden, Arps,
Slate, Meagher & Flor LLP in New York.
U.N. COMM'N ON INT'L TRADE LAW (UNCITRAL), UNCITRAL MODEL LAW ON CROss-BOR-
DER INSOLVENCY WITH GUIDE TO ENACTMENT, U.N. Sales No. E.99.V.3 (1997) [hereinafter MODEL
LAW], available at http://www.uncitral.org/pdf/english/texts/insolven/insolvencye.pdf The Model
Law was promulgated by the United Nations Commission on International Trade Law (UNCITRAL)
at its Thirtieth Session from May 12 to May 30, 1997. To date, thirteen countries or territories in
addition to the U.S. have adopted legislation based on the Model Law: Columbia (2006); Eritrea (1999);
Great Britain (2006); Japan (2000); Mexico (2000); Montenegro (2002); New Zealand (2006); Poland
(2003); Republic of Korea (2006); Romania (2003); Serbia (2004); South Africa (2000); and British Virgin
Islands, an overseas territory of the United Kingdom of Great Britain and Northern Ireland (2005). Ca,
nada (see infra note 178) and Australia are considering adopting legislation based on the Model Law.
2Pub. L. No. 109,8, 119 Stat. 23.
'11 U.S.C. § 304 (repealed 2005). Although § 304 was repealed, cases decided under it remain rele-
vant in construing 11 U.S.C. § 1507, which incorporates the elements of former § 304(c). See discussion
infra Part V.H.
41ida v. Kitahara (In re Iida), 377 B.R. 243, 254 (B.A.P. 9th Cir. 2007).
51d. at 254-55.
6Id. at 255.](ViewImageLocal?handle=hein.journals/ambank82&div=15&collection=&method=preview&ext=.png&size=3)
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Overview of Chapter 15 Ancillary and Other Cross-Border Cases
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