And Did You Know . . . After listening to expert testimony from a law school professor, the bankruptcy court entered a judgment in favor of the reorganizers, and the tennis professionals appealed. There was no showing that Taiwanese law discriminates against foreign nationals.
Taiwanese law does protect against fraudulent dispositions of property of the estate.
Priority is accorded to claims similar to those accorded priority in the United States. It is in the interest of the United States as a matter of comity to recognize the propriety of the Taiwanese reorganization proceedings. Under Illinois law, a debtor's right to support is exempt from the claims of creditors to the extent reasonably necessary for the debtor or the debtor's dependents. A bankruptcy court further rejected the debtor's argument that the nonassignability of her cause of action under Illinois law was sufficient to remove it from the property of the debtor's estate. Rather, it is a means of ensuring that withholding taxes are paid.