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Attention, forum shoppers! The Bankruptcy Court for the Southern District of New York, long known for its ability and willingness to handle large and complex business reorganizations with (even tangential) connections to New York as the 'financial capital of the world,' recently granted a motion filed by a group of creditors to transfer venue to California.
Ask any debtor's counsel, and s/he will tell you that venue is one of the most strategic decisions that a company can make in its bankruptcy planning. It can affect everything from precedent in the Circuit on fundamental issues in the case to ease of access to the court. The venue provisions themselves are fairly broad and, so, for the modern company with (inter)national reach, its options are myriad. Should it file in the district where its headquarters are located? Where its principal assets are located? Where it is incorporated? Or where one of its affiliates has filed for bankruptcy?
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