157
1308 and 1325(a)(7) of title 11, United States Code,
and
(2) in addition to the provisions of Rule 3007,
in a case under chapter 13 of title 11, United States
Code, no objection to a tax in respect of a return re-
quired to be filed under such section 1308 shall be
filed until such return has been filed as required.
SEC. 518. STANDARDS FOR TAX DISCLOSURE.
Section 1125(a) of title 11, United States Code, is
amended in paragraph (1)—
(1) by inserting after ‘‘records,’’ the following:
‘‘including a full discussion of the potential material
Federal, State, and local tax consequences of the plan
to the debtor, any successor to the debtor, and a hypo-
thetical investor domiciled in the State in which the
debtor resides or has its principal place of business
typical of the holders of claims or interests in the
case,’’,
(2) by inserting ‘‘such’’ after ‘‘enable’’, and
(3) by striking ‘‘reasonable’’ where it appears
after ‘‘hypothetical’’ and by striking ‘‘typical of hold-
ers of claims or interests’’ after ‘‘investor’’.
SEC. 519. SETOFF OF TAX REFUNDS.
Section 362(b) of title 11, United States Code, as
amended by sections 130, 146, and 150 is amended—
158
(1) in paragraph (21) by striking ‘‘or’’,
(2) in paragraph (22) by striking the period at
the end and inserting ‘‘; or’’, and
(3) by inserting after paragraph (22) (as so re-
designated) the following:
‘‘(23) under subsection (a) of the setoff of an in-
come tax refund, by a governmental unit, in respect
of a taxable period which ended before the order for
relief against an income tax liability for a taxable pe-
riod which also ended before the order for relief, un-
less—
‘‘(A) prior to such setoff, an action to deter-
mine the amount or legality of such tax liability
under section 505(a) was commenced; or
‘‘(B) where the setoff of an income tax re-
fund is not permitted because of a pending ac-
tion to determine the amount or legality of a tax
liability, the governmental unit may hold the re-
fund pending the resolution of the action.’’.
TITLE VI—ANCILLARY AND
OTHER CROSS-BORDER CASES
SEC. 601. AMENDMENT TO ADD A CHAPTER 6 TO TITLE 11,
UNITED STATES CODE.
(a) IN GENERAL.—Title 11, United States Code, is
amended by inserting after chapter 5 the following:
159
‘‘CHAPTER 6—ANCILLARY AND OTHER
CROSS-BORDER CASES
‘‘Sec.
‘‘601. Purpose and scope of application.
‘‘SUBCHAPTER I—GENERAL PROVISIONS
‘‘602. Definitions.
‘‘603. International obligations of the United States.
‘‘604. Commencement of ancillary case.
‘‘605. Authorization to act in a foreign country.
‘‘606. Public policy exception.
‘‘607. Additional assistance.
‘‘608. Interpretation.
‘‘SUBCHAPTER II—ACCESS OF FOREIGN REPRESENTATIVES AND
CREDITORS TO THE COURT
‘‘609. Right of direct access.
‘‘610. Limited jurisdiction.
‘‘611. Commencement of bankruptcy case under section 301 or 303.
‘‘612. Participation of a foreign representative in a case under this title.
‘‘613. Access of foreign creditors to a case under this title.
‘‘614. Notification to foreign creditors concerning a case under this title.
‘‘SUBCHAPTER III—RECOGNITION OF A FOREIGN PROCEEDING AND
RELIEF
‘‘615. Application for recognition of a foreign proceeding.
‘‘616. Presumptions concerning recognition.
‘‘617. Order recognizing a foreign proceeding.
‘‘618. Subsequent information.
‘‘619. Relief that may be granted upon petition for recognition of a foreign pro-
ceeding.
‘‘620. Effects of recognition of a foreign main proceeding.
‘‘621. Relief that may be granted upon recognition of a foreign proceeding.
‘‘622. Protection of creditors and other interested persons.
‘‘623. Actions to avoid acts detrimental to creditors.
‘‘624. Intervention by a foreign representative.
‘‘SUBCHAPTER IV—COOPERATION WITH FOREIGN COURTS AND
FOREIGN REPRESENTATIVES
‘‘625. Cooperation and direct communication between the court and foreign courts
or foreign representatives.
‘‘626. Cooperation and direct communication between the trustee and foreign
courts or foreign representatives.
‘‘627. Forms of cooperation.
‘‘SUBCHAPTER V—CONCURRENT PROCEEDINGS
‘‘628. Commencement of a case under this title after recognition of a foreign main
proceeding.
‘‘629. Coordination of a case under this title and a foreign proceeding.
160
‘‘630. Coordination of more than 1 foreign proceeding.
‘‘631. Presumption of insolvency based on recognition of a foreign main proceed-
ing.
‘‘632. Rule of payment in concurrent proceedings.
‘‘§ 601. Purpose and scope of application
‘‘(a) The purpose of this chapter is to incorporate the
Model Law on Cross-Border Insolvency so as to provide ef-
fective mechanisms for dealing with cases of cross-border in-
solvency with the objectives of—
‘‘(1) cooperation between—
‘‘(A) United States courts, United States
Trustees, trustees, examiners, debtors, and debt-
ors in possession; and
‘‘(B) the courts and other competent au-
thorities of foreign countries involved in cross-
border insolvency cases;
‘‘(2) greater legal certainty for trade and invest-
ment;
‘‘(3) fair and efficient administration of cross-
border insolvencies that protects the interests of all
creditors, and other interested entities, including the
debtor;
‘‘(4) protection and maximization of the value of
the debtor’s assets; and
‘‘(5) facilitation of the rescue of financially trou-
bled businesses, thereby protecting investment and
preserving employment.
161
‘‘(b) This chapter applies where—
‘‘(1) assistance is sought in the United States by
a foreign court or a foreign representative in connec-
tion with a foreign proceeding;
‘‘(2) assistance is sought in a foreign country in
connection with a case under this title;
‘‘(3) a foreign proceeding and a case under this
title with respect to the same debtor are taking place
concurrently; or
‘‘(4) creditors or other interested persons in a
foreign country have an interest in requesting the
commencement of, or participating in, a case or pro-
ceeding under this title.
‘‘(c) This chapter does not apply to—
‘‘(1) a proceeding concerning an entity identified
by exclusion in subsection 109(b); or
‘‘(2) an individual, or to an individual and such
individual’s spouse, who have debts within the limits
specified in under section 109(e) and who are citizens
of the United States or aliens lawfully admitted for
permanent residence in the United States.
‘‘SUBCHAPTER I—GENERAL PROVISIONS
‘‘§ 602. Definitions
‘‘For the purposes of this chapter, the term—
162
‘‘(1) ‘debtor’ means an entity that is the subject
of a foreign proceeding;
‘‘(2) ‘establishment’ means any place of oper-
ations where the debtor carries out a nontransitory
economic activity;
‘‘(3) ‘foreign court’ means a judicial or other au-
thority competent to control or supervise a foreign
proceeding;
‘‘(4) ‘foreign main proceeding’ means a foreign
proceeding taking place in the country where the debt-
or has the center of its main interests;
‘‘(5) ‘foreign nonmain proceeding’ means a for-
eign proceeding, other than a foreign main proceed-
ing, taking place in a country where the debtor has
an establishment;
‘‘(6) ‘trustee’ includes a trustee, a debtor in pos-
session in a case under any chapter of this title, or
a debtor under chapters 9 or 13 of this title; and
‘‘(7) ‘within the territorial jurisdiction of the
United States’ when used with reference to property
of a debtor refers to tangible property located within
the territory of the United States and intangible
property deemed under applicable nonbankruptcy law
to be located within that territory, including any
property subject to attachment or garnishment that
163
may properly be seized or garnished by an action in
a Federal or State court in the United States.
‘‘§ 603. International obligations of the United States
‘‘To the extent that this chapter conflicts with an obli-
gation of the United States arising out of any treaty or
other form of agreement to which it is a party with 1 or
more other countries, the requirements of the treaty or
agreement prevail.
‘‘§ 604. Commencement of ancillary case
‘‘A case under this chapter is commenced by the filing
of a petition for recognition of a foreign proceeding under
section 615.
‘‘§ 605. Authorization to act in a foreign country
‘‘A trustee or another entity (including an examiner)
authorized by the court may be authorized by the court to
act in a foreign country on behalf of an estate created under
section 541. An entity authorized to act under this section
may act in any way permitted by the applicable foreign
law.
‘‘§ 606. Public policy exception
‘‘Nothing in this chapter prevents the court from refus-
ing to take an action governed by this chapter if the action
would be manifestly contrary to the public policy of the
United States.
164
‘‘§ 607. Additional assistance
‘‘(a) Nothing in this chapter limits the power of the
court, upon recognition of a foreign proceeding, to provide
additional assistance to a foreign representative under this
title or under other laws of the United States.
‘‘(b) In determining whether to provide additional as-
sistance under this title or under other laws of the United
States, the court shall consider whether such additional as-
sistance, consistent with the principles of comity, will rea-
sonably assure—
‘‘(1) just treatment of all holders of claims
against or interests in the debtor’s property;
‘‘(2) protection of claim holders in the United
States against prejudice and inconvenience in the
processing of claims in such foreign proceeding;
‘‘(3) prevention of preferential or fraudulent dis-
positions of property of the debtor;
‘‘(4) distribution of proceeds of the debtor’s prop-
erty substantially in accordance with the order pre-
scribed by this title; and
‘‘(5) if appropriate, the provision of an oppor-
tunity for a fresh start for the individual that such
foreign proceeding concerns.
‘‘§ 608. Interpretation
‘‘In interpreting this chapter, the court shall consider
its international origin, and the need to promote an appli-
165
cation of this chapter that is consistent with the application
of similar statutes adopted by foreign jurisdictions.
‘‘SUBCHAPTER II—ACCESS OF FOREIGN REP-
RESENTATIVES AND CREDITORS TO THE
COURT
‘‘§ 609. Right of direct access
‘‘(a) A foreign representative is entitled to commence
a case under section 604 by filing a petition for recognition
under section 615, and upon recognition, to apply directly
to other Federal and State courts for appropriate relief in
those courts.
‘‘(b) Upon recognition, and subject to section 610, a
foreign representative has the capacity to sue and be sued,
and shall be subject to the laws of the United States of gen-
eral applicability.
‘‘(c) Recognition under this chapter is prerequisite to
the granting of comity or cooperation to a foreign proceed-
ing in any State or Federal court in the United States.
Any request for comity or cooperation in any court shall
be accompanied by a sworn statement setting forth whether
recognition under section 615 has been sought and the sta-
tus of any such petition.
‘‘(d) Upon denial of recognition under this chapter,
the court may issue appropriate orders necessary to prevent
166
an attempt to obtain comity or cooperation from courts in
the United States without such recognition.
‘‘§ 610. Limited jurisdiction
‘‘The sole fact that a foreign representative files a peti-
tion under sections 615 does not subject the foreign rep-
resentative to the jurisdiction of any court in the United
States for any other purpose.
‘‘§ 611. Commencement of case under section 301 or
303
‘‘(a) Upon filing a petition for recognition, a foreign
representative may commence—
‘‘(1) an involuntary case under section 303; or
‘‘(2) a voluntary case under section 301 or 302,
if the foreign proceeding is a foreign main proceeding.
‘‘(b) The petition commencing a case under subsection
(a) of this section must be accompanied by a statement de-
scribing the petition for recognition and its current status.
The court where the petition for recognition has been filed
must be advised of the foreign representative’s intent to
commence a case under subsection (a) of this section prior
to such commencement.
‘‘(c) A case under subsection (a) shall be dismissed un-
less recognition is granted.
167
‘‘§ 612. Participation of a foreign representative in a
case under this title
‘‘Upon recognition of a foreign proceeding, the foreign
representative in that proceeding is entitled to participate
as a party in interest in a case regarding the debtor under
this title.
‘‘§ 613. Access of foreign creditors to a case under this
title
‘‘(a) Foreign creditors have the same rights regarding
the commencement of, and participation in, a case under
this title as domestic creditors.
‘‘(b)(1) Subsection (a) of this section does not change
or codify present law as to the priority of claims under
section 507 or 726 of this title, except that the claim of a
foreign creditor under those sections shall not be given a
lower priority than that of general unsecured claims with-
out priority solely because the holder of such claim is a for-
eign creditor.
‘‘(2)(A) Subsection (a) of this section and paragraph
(1) of this subsection do not change or codify present law
as to the allowability of foreign revenue claims or other for-
eign public law claims in a proceeding under this title.
‘‘(B) Allowance and priority as to a foreign tax claim
or other foreign public law claim shall be governed by any
applicable tax treaty of the United States, under the condi-
tions and circumstances specified therein.
168
‘‘§ 614. Notification to foreign creditors concerning a
case under this title
‘‘(a) Whenever in a case under this title notice is to
be given to creditors generally or to any class or category
of creditors, such notice shall also be given to the known
creditors generally, or to creditors in the notified class or
category, that do not have addresses in the United States.
The court may order that appropriate steps be taken with
a view to notifying any creditor whose address is not yet
known.
‘‘(b) Such notification to creditors with foreign ad-
dresses described in subsection (a) shall be given individ-
ually, unless the court considers that, under the cir-
cumstances, some other form of notification would be more
appropriate. No letters rogatory or other similar formality
is required.
‘‘(c) When a notification of commencement of a case
is to be given to foreign creditors, the notification shall—
‘‘(1) indicate the time period for filing proofs of
claim and specify the place for their filing;
‘‘(2) indicate whether secured creditors need to
file their proofs of claim; and
‘‘(3) contain any other information required to
be included in such a notification to creditors pursu-
ant to this title and the orders of the court.
169
‘‘(d) Any rule of procedure or order of the court as
to notice or the filing of a claim shall provide such addi-
tional time to creditors with foreign addresses as is reason-
able under the circumstances.
‘‘SUBCHAPTER III—RECOGNITION OF A FOREIGN
PROCEEDING AND RELIEF
‘‘§ 615. Application for recognition of a foreign pro-
ceeding
‘‘(a) A foreign representative applies to the court for
recognition of the foreign proceeding in which the foreign
representative has been appointed by filing a petition for
recognition.
‘‘(b) A petition for recognition shall be accompanied
by—
‘‘(1) a certified copy of the decision commencing
the foreign proceeding and appointing the foreign
representative;
‘‘(2) a certificate from the foreign court affirm-
ing the existence of the foreign proceeding and of the
appointment of the foreign representative; or
‘‘(3) in the absence of evidence referred to in
paragraphs (1) and (2), any other evidence acceptable
to the court of the existence of the foreign proceeding
and of the appointment of the foreign representative.
170
‘‘(c) A petition for recognition shall also be accom-
panied by a statement identifying all foreign proceedings
with respect to the debtor that are known to the foreign rep-
resentative.
‘‘(d) The documents referred to in paragraphs (1) and
(2) of subsection (b) must be translated into English. The
court may require a translation into English of additional
documents.
‘‘§ 616. Presumptions concerning recognition
‘‘(a) If the decision or certificate referred to in section
615(b) indicates that the foreign proceeding is a foreign
proceeding within the meaning of section 101(23) and that
the person or body is a foreign representative within the
meaning of section 101(24), the court is entitled to so pre-
sume.
‘‘(b) The court is entitled to presume that documents
submitted in support of the petition for recognition are au-
thentic, whether or not they have been legalized.
‘‘(c) In the absence of evidence to the contrary, the
debtor’s registered office, or habitual residence in the case
of an individual, is presumed to be the center of the debtor’s
main interests.
‘‘§ 617. Order recognizing a foreign proceeding
‘‘(a) Subject to section 606, an order recognizing a for-
eign proceeding shall be entered if—
171
‘‘(1) the foreign proceeding is a foreign main
proceeding or foreign nonmain proceeding within the
meaning of section 602;
‘‘(2) the foreign representative applying for rec-
ognition is a person or body within the meaning of
section 101(24); and
‘‘(3) the petition meets the requirements of sec-
tion 615.
‘‘(b) The foreign proceeding shall be recognized—
‘‘(1) as a foreign main proceeding if it is taking
place in the country where the debtor has the center
of its main interests; or
‘‘(2) as a foreign nonmain proceeding if the debt-
or has an establishment within the meaning of section
602 in the foreign country where the proceeding is
pending.
‘‘(c) A petition for recognition of a foreign proceeding
shall be decided upon at the earliest possible time. Entry
of an order recognizing a foreign proceeding shall constitute
recognition under this chapter.
‘‘(d) The provisions of this subchapter do not prevent
modification or termination of recognition if it is shown
that the grounds for granting it were fully or partially lack-
ing or have ceased to exist, but in considering such action
the court shall give due weight to possible prejudice to par-
172
ties that have relied upon the granting of recognition. The
case under this chapter may be closed in the manner pre-
scribed for a case under section 350.
‘‘§ 618. Subsequent information
‘‘From the time of filing the petition for recognition
of the foreign proceeding, the foreign representative shall file
with the court promptly a notice of change of status con-
cerning—
‘‘(1) any substantial change in the status of the
foreign proceeding or the status of the foreign rep-
resentative’s appointment; and
‘‘(2) any other foreign proceeding regarding the
debtor that becomes known to the foreign representa-
tive.
‘‘§ 619. Relief that may be granted upon petition for
recognition of a foreign proceeding
‘‘(a) From the time of filing a petition for recognition
until the petition is decided upon, the court may, at the
request of the foreign representative, where relief is urgently
needed to protect the assets of the debtor or the interests
of the creditors, grant relief of a provisional nature, includ-
ing—
‘‘(1) staying execution against the debtor’s assets;
‘‘(2) entrusting the administration or realization
of all or part of the debtor’s assets located in the
173
United States to the foreign representative or another
person authorized by the court, including an exam-
iner, in order to protect and preserve the value of as-
sets that, by their nature or because of other cir-
cumstances, are perishable, susceptible to devaluation
or otherwise in jeopardy; and
‘‘(3) any relief referred to in paragraph (3), (4),
or (7) of section 621(a).
‘‘(b) Unless extended under section 621(a)(6), the relief
granted under this section terminates when the petition for
recognition is decided upon.
‘‘(c) It is a ground for denial of relief under this sec-
tion that such relief would interfere with the administration
of a foreign main proceeding.
‘‘(d) The court may not enjoin a police or regulatory
act of a governmental unit, including a criminal action or
proceeding, under this section.
‘‘(e) The standards, procedures, and limitations appli-
cable to an injunction shall apply to relief under this sec-
tion.
‘‘§ 620. Effects of recognition of a foreign main pro-
ceeding
‘‘(a) Upon recognition of a foreign proceeding that is
a foreign main proceeding—
174
‘‘(1) section 362 applies with respect to the debt-
or and that property of the debtor that is within the
territorial jurisdiction of the United States; and
‘‘(2) transfer, encumbrance, or any other disposi-
tion of an interest of the debtor in property within
the territorial jurisdiction of the United States is re-
strained as and to the extent that is provided for
property of an estate under sections 363, 549, and
552.
Unless the court orders otherwise, the foreign representative
may operate the debtor’s business and may exercise the pow-
ers of a trustee under section 549, subject to sections 363
and 552.
‘‘(b) The scope, and the modification or termination,
of the stay and restraints referred to in subsection (a) of
this section are subject to the exceptions and limitations
provided in subsections (b), (c), and (d) of section 362, sub-
sections (b) and (c) of section 363, and sections 552, 555
through 557, 559, and 560.
‘‘(c) Subsection (a) of this section does not affect the
right to commence individual actions or proceedings in a
foreign country to the extent necessary to preserve a claim
against the debtor.
‘‘(d) Subsection (a) of this section does not affect the
right of a foreign representative or an entity to file a peti-
175
tion commencing a case under this title or the right of any
party to file claims or take other proper actions in such
a case.
‘‘§ 621. Relief that may be granted upon recognition of
a foreign proceeding
‘‘(a) Upon recognition of a foreign proceeding, whether
main or nonmain, where necessary to effectuate the purpose
of this chapter and to protect the assets of the debtor or
the interests of the creditors, the court may, at the request
of the foreign representative, grant any appropriate relief,
including—
‘‘(1) staying the commencement or continuation
of individual actions or individual proceedings con-
cerning the debtor’s assets, rights, obligations or li-
abilities to the extent they have not been stayed under
section 620(a);
‘‘(2) staying execution against the debtor’s assets
to the extent it has not been stayed under section
620(a);
‘‘(3) suspending the right to transfer, encumber
or otherwise dispose of any assets of the debtor to the
extent this right has not been suspended under section
620(a);
‘‘(4) providing for the examination of witnesses,
the taking of evidence or the delivery of information
176
concerning the debtor’s assets, affairs, rights, obliga-
tions or liabilities;
‘‘(5) entrusting the administration or realization
of all or part of the debtor’s assets within the terri-
torial jurisdiction of the United States to the foreign
representative or another person, including an exam-
iner, authorized by the court;
‘‘(6) extending relief granted under section
619(a); and
‘‘(7) granting any additional relief that may be
available to a trustee, except for relief available under
sections 522, 544, 545, 547, 548, 550, and 724(a).
‘‘(b) Upon recognition of a foreign proceeding, whether
main or nonmain, the court may, at the request of the for-
eign representative, entrust the distribution of all or part
of the debtor’s assets located in the United States to the for-
eign representative or another person, including an exam-
iner, authorized by the court, provided that the court is sat-
isfied that the interests of creditors in the United States
are sufficiently protected.
‘‘(c) In granting relief under this section to a rep-
resentative of a foreign nonmain proceeding, the court must
be satisfied that the relief relates to assets that, under the
law of the United States, should be administered in the for-
177
eign nonmain proceeding or concerns information required
in that proceeding.
‘‘(d) The court may not enjoin a police or regulatory
act of a governmental unit, including a criminal action or
proceeding, under this section.
‘‘(e) The standards, procedures, and limitations appli-
cable to an injunction shall apply to relief under para-
graphs (1), (2), (3), and (6) of subsection (a).
‘‘§ 622. Protection of creditors and other interested
persons
‘‘(a) In granting or denying relief under section 619
or 621, or in modifying or terminating relief under sub-
section (c) of this section, the court must find that the inter-
ests of the creditors and other interested persons or entities,
including the debtor, are sufficiently protected.
‘‘(b) The court may subject relief granted under section
619 or 621 to conditions it considers appropriate.
‘‘(c) The court may, at the request of the foreign rep-
resentative or an entity affected by relief granted under sec-
tion 619 or 621, or at its own motion, modify or terminate
such relief.
‘‘§ 623. Actions to avoid acts detrimental to creditors
‘‘(a) Upon recognition of a foreign proceeding, the for-
eign representative has standing in a pending case under
178
another chapter of this title to initiate actions under sec-
tions 522, 544, 545, 547, 548, 550, and 724(a).
‘‘(b) When the foreign proceeding is a foreign nonmain
proceeding, the court must be satisfied that an action under
subsection (a) of this section relates to assets that, under
United States law, should be administered in the foreign
nonmain proceeding.
‘‘§ 624. Intervention by a foreign representative
‘‘Upon recognition of a foreign proceeding, the foreign
representative may intervene in any proceedings in a State
or Federal court in the United States in which the debtor
is a party.
‘‘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) In all matters included within section 601, the
court shall cooperate 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,
179
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) In all matters included in 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, designated by the court is entitled, subject to the super-
vision of the court, to communicate directly with foreign
courts or foreign representatives.
‘‘(c) Section 1104(d) shall apply to the appointment
of an examiner under this chapter. Any examiner shall
comply with the qualification requirements imposed on a
trustee by section 322.
‘‘§ 627. Forms of cooperation
‘‘Cooperation referred to in sections 625 and 626 may
be implemented by any appropriate means, including—
‘‘(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;
180
‘‘(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 cooperation and
coordination under sections 625, 626, and 627, to other as-
sets of the debtor that are within the jurisdiction 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 another
chapter of this title are taking place concurrently regarding
181
the same debtor, the court shall seek cooperation and coordi-
nation 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 case in the
United States; and
‘‘(B) even if the foreign proceeding is recog-
nized 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 filing of
the petition for recognition, of the foreign proceed-
ing—
‘‘(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 case in the
United States.
182
‘‘(3) In granting, extending, or modifying relief
granted to a representative of a foreign nonmain pro-
ceeding, the court must be satisfied that the relief re-
lates to assets that, under the law of the United
States, should be administered in the foreign nonmain
proceeding or concerns information required 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, 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 proceeding
after recognition of a foreign main proceeding must
be consistent with the foreign main proceeding.
‘‘(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 re-
lief in effect under section 619 or 621 shall be re-
viewed by the court and shall be modified or termi-
183
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 terminate
relief for the purpose of facilitating coordination of
the proceedings.
‘‘§ 631. Presumption of insolvency based on recogni-
tion of a foreign main proceeding
‘‘In the absence of evidence to the contrary, recognition
of a foreign main proceeding is for the purpose of commenc-
ing a proceeding under section 303, proof that the debtor
is generally not paying its debts.
‘‘§ 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 regarding
the debtor, so long as the payment to other creditors of the
same class is proportionately less than the payment 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’’.
184
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 examiner,
under chapters 7, 11, and 12, to debtors in possession under
chapters 11 and 12, and to debtors or trustees under chap-
ters 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 su-
pervision by a foreign court, for the purpose of reor-
ganization or liquidation;
186
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.
The amendments made by this Act shall apply only
with respect to cases commenced under title 11 of the United
States Code after the date of the enactment of this Act.