Vol 23 (2026) - Issue 5

Article preview

Low Bar, Wide Door: How Easy Is It for a Foreign Company to Seek Bankruptcy Relief in the United States?

Synopsis
What does it take for a foreign company with no real presence in the United States to seek relief under the US Bankruptcy Code? The entry barrier for seeking various types of bankruptcy relief, as a growing line of cases makes clear, is surprisingly low. In fact, merely giving a retainer to US bankruptcy counsel suffices as a sufficient nexus. This article surveys recent decisions on eligibility to file for relief under both Chapter
11 (the traditional plenary US reorganisation case) and Chapter 15 (the primary vehicle for recognition of cross-border insolvency proceedings), examining how courts have interpreted the ‘property in the United States’ requirement of Bankruptcy Code § 109(a) as a prerequisite for commencing a case.