Business Restructuring Review Vol. 23 No. 2 | March'April 2024

• Published date: 02 April 2024
• Subject Matter: Insolvency/Bankruptcy/Re-Structuring, Financial Restructuring, Insolvency/Bankruptcy
• Law Firm: Jones Day
• Author: Ms Corinne Ball, Caitlin Cahow, Roger Dobson, Juan Ferré, Katie Higgins, Dan Moss, Daniel Merrett, Dan Prieto and Jessica Brycki

In This Issue:

Singapore International Commercial Court Issues First Decision on Recognition of Cross-Border Bankruptcy Cases under Model Law

Established in 2015 as a trusted neutral forum to meet increasing demand for effective transnational dispute resolution, the Singapore International Commercial Court (the "SICC") is a division of the General Division of the High Court and part of the Supreme Court of Singapore. On January 18, 2024, the SICC handed down its first insolvency-related ruling. In Re PT Garuda Indonesia (Persero) Tbk [2024] SGHC(I) 1, the SICC granted recognition in Singapore of an Indonesian debtor-airline's "suspension of payments" proceeding under Singapore's version of the UNCITRAL Model Law on Cross-Border Insolvency. The SICC also recognized and enforced the terms of a composition plan approved by creditors and confirmed by an Indonesian court. In so ruling, the SICC overruled objections to recognition interposed by disgruntled aircraft lessors asserting, among other things, that recognition of the Indonesian proceeding would violate Singapore's public policy because creditors were treated unfairly in the debtor's composition plan. [read more ...]

Texas Bankruptcy Court: Debtor's Non-Economic Rights Under LLC Agreement Are Estate Property Protected by Automatic Stay

In In re Envision Healthcare Corp., 655 B.R. 701 (Bankr. S.D. Tex. 2023), the U.S. Bankruptcy Court for the Southern District of Texas examined the extent to which non-bankruptcy law can modify or terminate the voting and managerial interests that a debtor holds in a limited liability company ("LLC"). The court held that such interests become property of the estate on the bankruptcy petition date. It also ruled that the non-debtor members of an LLC who acted postpetition to cancel the debtor's rights under an LLC agreement based on a state law purporting to terminate such rights upon a bankruptcy filing violated the automatic stay. Finally, the court denied a motion to compel arbitration of the dispute over the cancellation because the matter was with the court's "core" jurisdiction, and arbitration would run against the purposes of the Bankruptcy Code. [read more ...]

Changes to Confirmed "Toggle" Chapter 11 Plan Required No Additional Disclosure and Voting Where Creditors' Rights Not Materially and Adversely Affected

The U.S. Bankruptcy Court for the Southern District of New York addressed the procedures governing post-confirmation modification of a chapter 11 plan in...