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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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?
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.