There are many US Bankruptcy laws, each with a different purpose depending on the situation.
To which US Bankruptcy laws are you referring, specifically?
BioAmber is a Cross-Border case. The United States (and other countries) have adopted certain laws in such situations, specifically for dealing with insolvency cases involving more than one country. According to the United States Courts, the reasons for this are as follows:
(1) to promote cooperation between the United States courts and parties of interest and the courts and other competent authorities of foreign countries involved in cross-border insolvency cases;
(2) to establish greater legal certainty for trade and investment;
(3) to provide for the fair and efficient administration of cross-border insolvencies that protects the interests of all creditors and other interested entities, including the debtor;
(4) to afford protection and maximization of the value of the debtor's assets; and
(5) to facilitate the rescue of financially troubled businesses, thereby protecting investment and preserving employment. 11 U.S.C. § 1501.
For example, in the instance of a Chapter 15 proceeding, the case will be ancillary to a primary proceeding brought in another country. This means the United States will not be in the proverbial "driver's seat", but rather will cooperate with the laws of the country which holds the primary proceeding. Here, it is the Canadian courts who are overseeing the case via CCAA, having appointed PwC as monitor and as recognized by US Chapter 15 laws as a "foreign representative" under a "foreign proceeding".
Any of this language sound familiar?
AI
