Skip to main content
TipRanks
Go Ultimate75% OFF

Cross-Border Restructuring Faces Greater Recognition Uncertainty

Cross-Border Restructuring Faces Greater Recognition Uncertainty

According to a recent LinkedIn post from 9fin, a growing number of U.S. companies are exploring foreign restructuring jurisdictions before seeking recognition of those proceedings in U.S. Bankruptcy Court. The post points to a recent opinion by Chief Judge Martin Glenn as a development that could lead courts to refuse recognition in some cases.

The post frames the issue as a debate over “jurisdiction arbitrage,” in which companies select restructuring venues based partly on legal advantages. It promotes a webinar featuring cross-border restructuring practitioners from Kirkland & Ellis, Paul Weiss and White & Case, alongside 9fin representatives, to examine recent cases and the trend’s underlying drivers.

If recognition becomes less predictable, companies and their advisers could face higher legal costs, longer timelines and fewer restructuring options. Greater scrutiny may also affect how lenders and sponsors assess recoveries, enforcement risks and transaction structures in cross-border situations, potentially strengthening the importance of early jurisdictional analysis.

Disclaimer & DisclosureReport an Issue

Related Articles