The US Bankruptcy Code is one of the clearest and most
respected in the world. Companies facing insolvency try to
leverage off any US connection they might have to gain access
Municipalities’ path to recovery under
the US Bankruptcy Code is just as clear
Corporates' use of Chapter 11 has increased tremendously
over the last decade. Foreign companies including Overseas
Shipholding Group, CEDC Vodka and Maxcom have all used US
assets, subsidiaries or registrations as a means to file
bankruptcy under US law. Debtors and creditors typically have
more confidence in the outcome when a proceeding is handled in
this well tested way.
For municipalities, however, the Code...