One of the effects of commercial globalization is that the bankruptcy filing of a debtor with transnational business relationships will sometimes result in a clash between the substantive bankruptcy laws of different countries. A frequent question is whether the bankruptcy laws of a foreign country should be brought to bear upon creditors located in the United States, even where foreign bankruptcy law is at odds with the laws of the United States. On December 3, 2013, the United States Court of Appeals for the Fourth Circuit, in an appeal stemming from the Chapter 15 bankruptcy case of Qimonda AG (“Qimonda”), issued a decision that allowed U.S. licensees to continue performing under patent license agreements, even though the German administrator for Qimonda sought to terminate or renegotiate those license agreements under German bankruptcy law.1 The Fourth Circuit embraced a Chapter 15 balancing test for relief under Chapter 15 similar to that of the Fifth Circuit in In re Vitro S.A.B. de CV, 701 F.3d 1031 (5th Cir. 2012) and, like the Fifth Circuit in Vitro, reached a conclusion that protected creditors in the United States from the effects of foreign bankruptcy law and proceedings. A company that is in an insolvency proceeding in a foreign country… Read full this story
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Another U.S. Court of Appeals Decision Protects U.S. Creditors from the Effects of Foreign Bankruptcy Law have 282 words, post on www.natlawreview.com at January 12, 2014. This is cached page on Law Breaking News. If you want remove this page, please contact us.