Offshore Bankruptcies

This Article begins with a brief description of international bankruptcy forum shopping. This initial section discusses the two principal models for conducting transnational insolvencies and explains how forum shopping can be accomplished under each. It then discusses the problems forum shopping creates, particularly in relation to haven jurisdictions. And finally it examines forum shopping from an American perspective and distinguishes between two general types of forum shopping: inbound and outbound. Part III discusses the sections of the U.S. Bankruptcy Code aimed at dealing with the problem of outbound forum shopping, first under Section 304 and then under Chapter 15. It also outlines the debate regarding the impact the new law would have on outbound forum shopping. Part IV reviews the development of Chapter 15 by highlighting three major decisions: In re Tri-Continental, In re SPhinX, and In re Bear Stearns. Parts V and VI present the data collection methodology and the findings concerning the impact the law has had on outbound forum shopping: although forum shopping into offshore havens accounted for nearly a third of all filings under Section 304 and Chapter 15, such forum shopping came to an abrupt halt after the court\u27s decision in In re Bear Stearns. Part VII argues that this data signals the end of outbound forum shopping and discusses the importance of this conclusion