Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

The Bankruptcy StrategistFeaturesKickerLJN NewslettersNewsSections

<b><i> In Re Fairfield Sentry Limited</i></b>

By Daniel J. Saval
September 02, 2015

Krys v. Farnum Place, LLC (In re Fairfield Sentry Ltd.), 768 F.3d 239 (2d Cir. 2014) (Fairfield Sentry) is the first federal circuit court decision to address the application of Section 363 in a Chapter 15 bankruptcy case. Enacted in 2005, Chapter 15 of the Bankruptcy Code applies to cross-border insolvency proceedings. Chapter 15 enables the representative of the foreign bankruptcy estate to apply to a U.S. bankruptcy court for recognition of a foreign insolvency proceeding and, if recognition is granted, relief in aid of that proceeding. Where the foreign proceeding is recognized as a foreign main proceeding (i.e., a foreign insolvency proceeding pending in the location of the debtor's center of main interests), Section 1520(a) automatically makes certain core provisions of the Bankruptcy Code applicable as to matters within the United States.

The meaning and application of Section 1520(a)(2) was at the heart of the Fairfield Sentry decision. Section 1520(a)(2) makes Section 363 (among other Code sections) applicable upon foreign main recognition to “the transfer of an interest of the debtor in property that is within the territorial jurisdiction of the United States to the same extent that the section[] would apply to property of an estate.” Undertaking a “plain meaning” statutory analysis, the U.S. Court of Appeal for the Second Circuit in Fairfield Sentry held that, when triggered under Chapter 15, Section 363 applies no differently than it would in a plenary bankruptcy case, and requires the bankruptcy court to perform an independent review of the proposed sale under the well-established Section 363 standards, even if the foreign court overseeing the main proceeding has previously approved the transaction.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It Image

Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

A Lawyer's System for Active Reading Image

Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.

Protecting Innovation in the Cyber World from Patent Trolls Image

With trillions of dollars to keep watch over, the last thing we need is the distraction of costly litigation brought on by patent assertion entities (PAEs or "patent trolls"), companies that don't make any products but instead seek royalties by asserting their patents against those who do make products.