Jim Bromley was interviewed by Bloomberg News on the recent increase in foreign companies filing bankruptcy cases in U.S. courts. Over a dozen major foreign corporations filed bankruptcy cases in the U.S. in 2020—more than doubling the previous high mark in 2002.
The U.S. system is best equipped to handle complicated restructuring cases, Jim told Bloomberg. “The local jurisdictions do not have as robust systems that would allow a complex, international entity to reorganize,” he said. “Most of the material creditors are connected to the U.S. in one way, shape or form.” The U.S. is particularly attractive for European-based companies, Bromley added, given uncertainty in UK courts stemming from Brexit. To read the full article, click here.
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