Kirkland Alert Kirkland & Ellis LLP

Bankruptcy Court Denies Chapter 15 Protection for Hedge Fund

In 2005, Congress added Chapter 15 to the Bankruptcy Code to provide more effective mechanisms for the coordination and implementation of cross-border restructurings. This Alert examines a recent interpretation of Chapter 15 by the Bankruptcy Court for the Southern District of New York and its possible effects on future proceedings involving off-shore hedge funds.