According to Bloomberg Law dockets, through Oct. 31 alone, chapter 15 filings are up a whopping 68 percent over total 2019 filings. In contrast, total U.S. non-consumer bankruptcy filings through the close of third quarter of 2020 are slightly down — about 2.5 percent, compared to the same time period in 2019. A look at these raw numbers would lead us to believe that while our economy is rebounding, other countries are foundering miserably. But that is not necessarily the case, according to the commentary. As the pandemic and economic uncertainty linger, companies will continue to experience hardship, and some will file insolvency proceedings in their respective countries. A portion of those insolvent companies that have creditor exposure or assets in the U.S. and that are well-positioned enough to afford multiple simultaneous bankruptcies will undoubtedly file chapter 15 here. Although more than 40 countries have implemented some form of the UNCITRAL Model Law on Cross-Border Insolvency (the “Model Law”), the law upon which chapter 15 is based, only 20 countries are represented in the list of foreign proceeding venues for 2020. At the top of the list is Canada with 127 cases through October 31. Canadian debtors account for more than half of the chapter 15 cases filed in the United States. Even without the June filing of Cirque de Soleil and its more than 40 related entities, Canada would still lead the list, with more than 80 other cases originating in the country so far in 2020. Thanks to the Virgin Atlantic Airways bankruptcy and its 30-plus co-debtors, Australian debtors come in at No. 2. It is noteworthy that, were it not for the airline cases, Australia would barely have cracked the top 10, with only two cases.
