INTRODUCTION TO FOREIGN PROCEEDINGS &
SECTION 304 OF THE BANKRUPTCY CODE
By: Francisco Vazquez

As a general rule, the laws or orders of one country are not automatically enforced in another. This should not be interpreted as limiting the applicability of the laws of a country to its borders. Laws may apply extraterritorially. For example, the automatic stay imposed by section 362(a) of the Bankruptcy Code has been held to apply outside the United States. See United States Lines, Inc. v. Gas Marine Fuels, Ltd. (In re McLean Indus., Inc.), 68 B.R. 690 (Bankr. S.D.N.Y. 1986); In re McLean Indus., 74 B.R. 589 (Bankr. S.D.N.Y. 1987). However, simply because a law is theoretically applicable outside the United States does not necessarily make it enforceable against parties outside the United States. Until a specific law of the United States is granted recognition by a foreign court, said law will generally not be enforced in that foreign country. Similarly, courts in the United States will generally not enforce the law of another country absent formal (United States) court recognition of the relevant foreign law.
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JOINT PROGRAM TO BE PRESENTED BY THE BUSINESS REORGANIZATION COMMITTEE AND THE YOUNG MEMBERS COMMITTEE AT THE ABI WINTER LEADESHIP CONFERENCE

The Business Reorganization Committee and the Young Members Committee will collaborate to present an education program at the ABI’s Winter Leadership Conference in Scottsdale, Arizona, December 2-4, 2004. The program is entitled “Valuations in Chapter 11 Cases: What You Want Depends On Where You Sit (And When You Are Sitting There)”. This panel will explore common methodologies for determining the value of reorganizing businesses and, more critically, the use of valuation as a tactical tool by various key constituencies in the Chapter 11 case at various points on the Chapter 11 timeline, including confirmation proceedings. The panel will discuss when valuations are used, why they may be needed, what they may be used for, and what parties can and should do with valuation information when they have it. The panel will also explore how changes to certain key assumptions can affect valuation conclusions, and how such changes might be used (or opposed) by the competing parties. This last point will be illustrated by individual panelists assuming the role of advisor to the various key players: senior secured debt, junior or unsecured debt, and equity. Scheduled speakers include: Scott Lang, Senior Managing Director, Brown Gibbons Lang & Company; Stephen S Gray, TRG; Jonathan Rosenthal, Saybrook; and Miles Molyneaux, Corporate Recovery, KPMG. The moderator of the panel will be Melissa Kibler Knoll, co-chair of the Young Members Committee.

COMMITTEE SEEKS ARTICLE SUBMISSIONS

The committee solicits all ABI members to submit short articles (500-1,000 words) for publication in the committee’s e-newsletter. If you would like to submit an article, please contact Doug Deutsch. The committee is also looking for members who would like to participate in panel presentations.

FYI

In the December YNMC newsletter, Allen Wilen and Richard Kruger published "My First Preference Defense--Some Practical Pointers for Attorneys and Accountants." If you would like to get a better understanding of preferences, access their article by clicking on the following link: YNMC E-Newsletter