Thought Leadership

       After nearly two years of litigation, the Bankruptcy Court for the District of New Jersey granted recognition of the Hong Kong liquidation of Manley Toys Limited as a foreign main proceeding.  Two parties aggressively opposed recognition, raising numerous issues including whether the Hong Kong liquidation was collective, whether Hong Kong was the debtor’s center of main interests and whether recognition would be manifestly contrary to the public policy of the United States.  The Court addressed these and all of the other definitional elements of a “foreign proceeding” and the “foreign representatives” and ruled that the Liquidators met their burden of proof on all issues while the objectors failed to prove that recognition violated public policy.  CBI principal Dan Glosband was co-counsel to the Liquidators and is now representing them in the appeals from recognition by the two objectors. 

       Shortly after granting recognition, the Court denied a request by one of the objecting parties for relief from stay to pursue fraudulent transfer and alter ego claims.  The Court ruled that those claims belonged to the Liquidators once the debtor corporation went into winding up proceedings and the claims could only be prosecuted for the benefit of all creditors.

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In a cross-border insolvency matter, if an expert opinion is required, if skilled mediation or arbitration can help resolve disputes, or if cross-border insolvency is simply unfamiliar territory, CBI can help. We will be pleased to discuss your cross-border insolvency issues and agree on a case-specific arrangement to assist you.  Please reach out to any of us for a quick and easy assessment of how we can help you. We welcome your thoughts, comments and questions. 

clark@cbinsolvency.com
esher@cbinsolvency.com
glosband@cbinsolvency.com