Servicos de Petroleo Constellation SA, a Brazilian oil-and-gas drilling company, filed for bankruptcy in the U.S. on Thursday to help it restructure nearly $1.5 billion in debt, WSJ Pro Bankruptcy reported. The company sought chapter 15 protection, the section of the bankruptcy code that deals with international insolvencies, in U.S. Bankruptcy Court in New York. Much of Constellation’s debt is governed by New York law, court papers show, and it has several bank accounts in New York. Foreign companies with ties to the U.S. often use chapter 15 to seek court recognition of their insolvencies. If approved by a U.S. judge, it acts much like chapter 11, halting lawsuits and preventing creditors from seizing U.S.-based assets. Read more.
Cover all aspects of the UNCITRAL Model Law on Cross-Border Insolvency as well as chapter 15 of the Bankruptcy Code with ABI’s Chapter 15 for Foreign Debtors.
