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‘‘SUBCHAPTER IV—COOPERATION WITH FOR-
EIGN COURTS AND FOREIGN REPRESENTA-
TIVES
‘‘§ 625. Cooperation and direct communication be-
tween the court and foreign courts or for-
eign representatives
‘‘(a) Consistent with section 601, the court shall co-
operate to the maximum extent possible with foreign
courts or foreign representatives, either directly or
through the trustee.
‘‘(b) The court is entitled to communicate directly
with, or to request information or assistance directly from,
foreign courts or foreign representatives, subject to the
rights of parties in interest to notice and participation.
‘‘§ 626. Cooperation and direct communication be-
tween the trustee and foreign courts or
foreign representatives
‘‘(a) Consistent with section 601, the trustee or other
person, including an examiner, authorized by the court,
shall, subject to the supervision of the court, cooperate to
the maximum extent possible with foreign courts or for-
eign representatives.
‘‘(b) The trustee or other person, including an exam-
iner, authorized by the court is entitled, subject to the su-
193
pervision of the court, to communicate directly with for-
eign courts or foreign representatives.
‘‘§ 627. Forms of cooperation
‘‘Cooperation referred to in sections 625 and 626
may be implemented by any appropriate means, includ-
ing—
‘‘(1) appointment of a person or body, including
an examiner, to act at the direction of the court;
‘‘(2) communication of information by any
means considered appropriate by the court;
‘‘(3) coordination of the administration and su-
pervision of the debtor’s assets and affairs;
‘‘(4) approval or implementation of agreements
concerning the coordination of proceedings; and
‘‘(5) coordination of concurrent proceedings re-
garding the same debtor.
‘‘SUBCHAPTER V—CONCURRENT PROCEEDINGS
‘‘§ 628. Commencement of a case under this title after
recognition of a foreign main proceeding
‘‘After recognition of a foreign main proceeding, a
case under another chapter of this title may be commenced
only if the debtor has assets in the United States. The
effects of that case shall be restricted to the assets of the
debtor that are within the territorial jurisdiction of the
United States and, to the extent necessary to implement
194
cooperation and coordination under sections 625, 626, and
627, to other assets of the debtor that are within the juris-
diction of the court under sections 541(a) of this title, and
1334(e) of title 28, to the extent that such other assets
are not subject to the jurisdiction and control of a foreign
proceeding that has been recognized under this chapter.
‘‘§ 629. Coordination of a case under this title and a
foreign proceeding
‘‘Where a foreign proceeding and a case under an-
other chapter of this title are taking place concurrently
regarding the same debtor, the court shall seek coopera-
tion and coordination under sections 625, 626, and 627,
and the following shall apply:
‘‘(1) When the case in the United States is tak-
ing place at the time the petition for recognition of
the foreign proceeding is filed—
‘‘(A) any relief granted under sections 619
or 621 must be consistent with the relief grant-
ed in the case in the United States; and
‘‘(B) even if the foreign proceeding is rec-
ognized as a foreign main proceeding, section
620 does not apply.
‘‘(2) When a case in the United States under
this title commences after recognition, or after the
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filing of the petition for recognition, of the foreign
proceeding—
‘‘(A) any relief in effect under sections 619
or 621 shall be reviewed by the court and shall
be modified or terminated if inconsistent with
the case in the United States; and
‘‘(B) if the foreign proceeding is a foreign
main proceeding, the stay and suspension re-
ferred to in section 620(a) shall be modified or
terminated if inconsistent with the relief grant-
ed in the case in the United States.
‘‘(3) In granting, extending, or modifying relief
granted to a representative of a foreign nonmain
proceeding, the court must be satisfied that the re-
lief relates to assets that, under the law of the
United States, should be administered in the foreign
nonmain proceeding or concerns information re-
quired in that proceeding.
‘‘(4) In achieving cooperation and coordination
under sections 628 and 629, the court may grant
any of the relief authorized under section 305.
‘‘§ 630. Coordination of more than 1 foreign proceed-
ing
‘‘In matters referred to in section 601, with respect
to more than 1 foreign proceeding regarding the debtor,
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the court shall seek cooperation and coordination under
sections 625, 626, and 627, and the following shall apply:
‘‘(1) Any relief granted under section 619 or
621 to a representative of a foreign nonmain pro-
ceeding after recognition of a foreign main proceed-
ing must be consistent with the foreign main pro-
ceeding.
‘‘(2) If a foreign main proceeding is recognized
after recognition, or after the filing of a petition for
recognition, of a foreign nonmain proceeding, any
relief in effect under section 619 or 621 shall be re-
viewed by the court and shall be modified or termi-
nated if inconsistent with the foreign main proceed-
ing.
‘‘(3) If, after recognition of a foreign nonmain
proceeding, another foreign nonmain proceeding is
recognized, the court shall grant, modify, or termi-
nate relief for the purpose of facilitating coordina-
tion of the proceedings.
‘‘§ 631. Presumption of insolvency based on recogni-
tion of a foreign main proceeding
‘‘In the absence of evidence to the contrary, recogni-
tion of a foreign main proceeding is for the purpose of
commencing a proceeding under section 303, proof that
the debtor is generally not paying its debts.
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‘‘§ 632. Rule of payment in concurrent proceedings
‘‘Without prejudice to secured claims or rights in
rem, a creditor who has received payment with respect to
its claim in a foreign proceeding pursuant to a law relating
to insolvency may not receive a payment for the same
claim in a case under any other chapter of this title re-
garding the debtor, so long as the payment to other credi-
tors of the same class is proportionately less than the pay-
ment the creditor has already received.’’.
(b) CLERICAL AMENDMENT.—The table of chapters
for title 11, United States Code, is amended by inserting
after the item relating to chapter 5 the following:
‘‘6. Ancillary and Other Cross-Border Cases ..........................
601’’.
SEC. 602. AMENDMENTS TO OTHER CHAPTERS IN TITLE 11,
UNITED STATES CODE.
(a) APPLICABILITY OF CHAPTERS.—Section 103 of
title 11, United States Code, is amended—
(1) in subsection (a), by inserting before the pe-
riod the following: ‘‘and this chapter, sections 307,
555 through 557, 559, and 560 apply in a case
under chapter 6’’; and
(2) by adding at the end the following:
‘‘(j) Chapter 6 applies only in a case under that chap-
ter, except that section 605 applies to trustees and to any
other entity authorized by the court, including an exam-
iner, under chapters 7, 11, and 12, to debtors in posses-
198
sion under chapters 11 and 12, and to debtors or trustees
under chapters 9 and 13 who are authorized to act under
section 605.’’.
(b) DEFINITIONS.—Section 101 of title 11, United
States Code, is amended by striking paragraphs (23) and
(24) and inserting the following:
‘‘(23) ‘foreign proceeding’ means a collective ju-
dicial or administrative proceeding in a foreign state,
including an interim proceeding, pursuant to a law
relating to insolvency in which proceeding the assets
and affairs of the debtor are subject to control or
supervision by a foreign court, for the purpose of re-
organization or liquidation;
‘‘(24) ‘foreign representative’ means a person
or body, including a person or body appointed on an
interim basis, authorized in a foreign proceeding to
administer the reorganization or the liquidation of
the debtor’s assets or affairs or to act as a rep-
resentative of the foreign proceeding;’’.
(c) AMENDMENTS TO TITLE 28, UNITED STATES
CODE.—
(1) PROCEDURES.—Section 157(b)(2) of title
28, United States Code, is amended—
(A) in subparagraph (N), by striking
‘‘and’’ at the end;
199
(B) in subparagraph (O), by striking the
period at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(P) recognition of foreign proceedings and
other matters under chapter 6 of title 11.’’.
(2) BANKRUPTCY CASES AND PROCEEDINGS.—
Section 1334(c)(1) of title 28, United States Code,
is amended by striking ‘‘Nothing in’’ and inserting
‘‘Except with respect to a case under chapter 6 of
title 11, nothing in’’.
(3) DUTIES OF TRUSTEES.—Section 586(a)(3)
of title 28, United States Code, is amended by in-
serting ‘‘6,’’ after ‘‘chapter’’.
TITLE VII—MISCELLANEOUS
SEC. 701. TECHNICAL AMENDMENTS.
Title 11 of the United States Code is amended—
(1) in section 109(b)(2) by striking ‘‘subsection
(c) or (d) of’’;
(2) in section 541(b)(4) by adding ‘‘or’’ at the
end; and
(3) in section 552(b)(1) by striking ‘‘product’’
each place it appears and inserting ‘‘products’’.
SEC. 702. APPLICATION OF AMENDMENTS.
Except as otherwise provided in this Act, the amend-
ments made by this this Act shall apply only with respect
200
to cases commenced under title 11 of the United States
Code after the date of the enactment of this Act.
Passed the House of Representatives June 10, 1998.
Attest:
Clerk.