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Recently, there has been a divergence of opinion when it comes to whether a foreign liquidator must commence a Chapter 15 case before seeking comity in the United States (the “US”). In Moyal v. Münsterland Gruppe GMbH & Co. KG1, a plaintiff commenced an action in New York state court, which was eventually removed to the Southern District of New York, seeking damages from a defendant arising from a breach of a distribution agreement.
What happens when avoidance claims under foreign insolvency law face off against US bankruptcy law’s safe harbor provisions? Can service on non-US parties be proper even when conceded to be inconsistent with the Hague Convention?1 On December 14, 2020, the US Bankruptcy Court for the Southern District of New York (the “Court”) issued a memorandum decision in In re Fairfield Sentry Ltd.
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