Achieving COMI: Pre-Filing Considerations Based on Recent Case Law

In an article published in Pratt’s Journal of Bankruptcy Law, Sidley lawyers Anthony R. Grossi, Ameneh Bordi, Jacob Lester, and Garrett Altman examine how U.S. bankruptcy courts determine a debtor’s center of main interests (COMI) under Chapter 15 of the U.S. Bankruptcy Code when evaluating recognition of foreign insolvency proceedings. Drawing on recent case law, the authors analyze the factors courts consider when assessing COMI, including the location of a debtor’s registered office, assets, operations, and management, as well as creditor expectations and support. The article also outlines practical considerations for companies pursuing cross-border restructurings, including pre-filing strategies to establish or shift COMI and strengthen the likelihood of U.S. recognition of foreign proceedings.

Read the full article for key takeaways from recent Chapter 15 decisions and practical considerations for companies planning cross-border restructurings.