Cross border insolvencies and financial restructurings are remarkably opaque considering we live in the Information Age. The mission of the Centre of Main Interest (the COMI) is to light some candles in the darkness and create a forum for further discussion. The Law Offices of Tally M. Wiener, Esq. are pleased to publish the COMI blog.
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Saturday, August 18, 2012
Sanko Steamship Co., Ltd. Reorganisation Moves Ahead With Recognition of Japanese Proceeding in United States
August 10, 2012 Reorganizing Company, The Sanko Steamship Co., Ltd. Trustee, Hisashi Asafuji This is an update regarding our corporate reorganisation proceedings. For further background, we refer to our previous releases of 2 July, 5 July and 1 August 2012.
As previously advised, on 2 July 2012 Sanko filed a petition for the commencement of corporate reorganisation proceedings in Japan. On 2 July 2012 in New York, Sanko also filed a petition for relief under Chapter 15 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York (the "US Bankruptcy Court"). Through its foreign representative, Sanko commenced the US Chapter 15 case to obtain recognition of the Japanese reorganisation proceedings and related relief, including the provisional application of the automatic stay under section 362 of the United States Bankruptcy Code which enjoins the commencement or continuation of creditor actions in the United States against Sanko or its property while the petition for recognition remains pending or as otherwise ordered by the US Bankruptcy Court.
Sanko is pleased to report that on 8 August 2012 the US Bankruptcy Court granted the chapter 15 petition for recognition thereby recognizing Sanko's Japanese reorganisation proceedings as a "foreign main proceeding" and, with such recognition, Sanko and its property in the United States are protected by the automatic stay while Sanko continues the work on Sanko's overall reorganisation. We note also that Sanko obtained similar recognition of the Japanese proceedings as main proceedings in Great Britain on 30 July 2012.
With the successful recognition of Sanko's Japanese reorganisation proceedings in these key jurisdictions, Sanko's reorganisation is now firmly underway. For the avoidance of doubt, Sanko remains prepared to take such other steps as it determines may be needed to ensure that the stay resulting from the Japanese proceedings is duly enforced wherever Sanko is located or has operations or property. Sanko can obtain such protection wherever it requires it to allow its operations to continue.
Sanko remains confident that these efforts will maximize Sanko's ability to implement a rehabilitation plan with the support of its creditors. Sanko looks forward to the work ahead to develop a proposed plan of reorganisation, which is expected to be proposed in the first quarter of 2013. Sanko is grateful for the continued support of Sanko's many creditors and trading partners. . . .