24 Pages Posted: 19 Feb 2014
Date Written: December 23, 2009
This article reports the results of an empirical analysis of the impact of Chapter 15 of the Bankruptcy Code, which was enacted in 2005 to replace the former Section 304. I examine all Section 304 motions filed in the three years before the change in law and all Chapter 15 filings following in the three years afterwards, analyzing the number of petitions originating from haven jurisdictions. These data indicate that, while the change in law itself did not produce any detectable change in practice, the subsequent interpretation of Chapter 15 in the high-profile case of an offshore Bear Stearns hedge fund did make an impact: after that decision, the number of petitions seeking cooperation with havens dramatically dropped off. From this finding, I concluded that Chapter 15 is promoting cooperation but in a fact-sensitive way that can prevent forum shopping.
Suggested Citation: Suggested Citation