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Monday, April 15, 2013

Canadian Telemarketer Seeks Ch. 15 Protection In Delaware

Going by the coverage below, chapter 15 recognition was granted on the spot. 

Wow.  Was there a meaningful opportunity for creditors or other interested parties to object?

Per www.globalinsolvency.com:

Mon., April 15, 2013
 
U.S. units of Canadian telemarketer iMarketing Solutions Group Inc. entered Chapter 15 in Delaware bankruptcy court Friday and sought immediate recognition of the insolvency proceedings commenced by its parent in a Toronto court earlier in the day, Law360 reported. Counsel for Xentel Inc. and seven other IMSG subsidiaries appeared in Wilmington hours after the Chapter 15 filing and asked the Delaware court to officially recognize the foreign proceedings as the company was “gravely concerned” that U.S. creditors hearing of the Canadian case would otherwise seek to terminate contracts and other agreements, said attorney Domenic E. Pacitti of Klehr Harrison Harvey Branzburg LLP. U.S. Bankruptcy Judge Kevin Gross signed off on the provisional recognition order — which invokes the automatic stay — and the three other first-day motions presented. “I'm certainly prepared to grant this relief,” Judge Gross said. A direct-marketing firm specializing in fundraising for nonprofit groups and political organizations, IMSG launched proceedings Friday in Ontario Superior Court of Justice under the Companies' Creditors Arrangement Act, the Canadian equivalent of Chapter 11. Toronto-based IMSG is the direct and indirect parent of 22 subsidiaries, Pacitti said, and employs more than 1140 people throughout North America. The Canadian company will act as the official foreign representative in the Delaware case.



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