U.S. Bankruptcy Courts Balance the Statutory Protections of Stakeholders with the Needs of Discovery in Foreign Bankruptcy Proceedings

Authors

Conor Carman

Document Type

Research Memorandum

Publication Date

2024

Abstract

(Excerpt)

Chapter 15 of title 11 of the United States Code (the "Bankruptcy Code") establishes methods for managing insolvency cases that encompass debtors, assets, claimants, and other parties across multiple nations. Section 1521(a)(4) allows courts to grant discovery relief. To determine whether to grant discovery relief, courts balance the right to discovery relief with stakeholder interests. As part of a U.S. courts’ analysis, it considers principles of comity to support a foreign bankruptcy proceeding.

This memorandum discusses the statutory availability for discovery relief under chapter 15, limitations on discovery imposed by courts to protect stakeholder interests, comity, and how courts balance these considerations when granting or denying discovery relief.