Can bankruptcy laws be exported?

Article Abstract:

Two Canadian bankruptcy court cases in which companies sought the protection of the United States Bankruptcy Code, specifically the stay option of Chapter 11, are discussed. Canada's Bankruptcy and Insolvency Act does not automatically recognize foreign stays of proceedings. In the first case, an Alberta court ruled that a Canadian company doing business only in Canada and with only Canadian assets , even though the parent is based in the United States, could not invoke the "comity of nations' doctrine. In the second case, a court recognized the Chapter 11 stay because the American parent filed bankruptcy and asked the Canadian courts for help in dealing with a global solution that would solve the company's problems.

Canada

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Nine-tenths of the law

Article Abstract:

The Bankruptcy and Insolvency Act in Canada enables suppliers to bankrupt firms or companies in receivership to collect their supplies within 30 days of the original shipment. The act contains many loopholes that will make it difficult for suppliers to realize any benefits from the law. To reclaim goods the supplies must be in the hands of the buyer or receiver/trustee; supplies must be identifiable, which might only help suppliers that have serial numbers on their products; supplies must be in their original state and supplies must not have been sold or paid for. The last qualification is not too hard on suppliers because in most cases of dealing with bankrupt or failing companies, supplies will be delivered C.O.D.

Accounting, auditing, & bookkeeping, Debtor and creditor

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New lease on life: Canada's bankruptcy insolvency legislation now seeks the restructuring of a bankrupt business, rather than its liquidation

Article Abstract:

The 1992 amendments to Canada's Bankruptcy Act introduced major initiated the comprehensive reform of insolvency and bankruptcy statute in more than 40 years. The bill, in 1996, came out as Bill C-5 in a new session of Parliament and was approved by the House of Commons, with some modifications proposed by the Senate. Bankruptcy reform maintains the process of transforming liquidation-oriented legislation to one that focuses on rehabilitation of businesses. Amendments to the Bill C-5 are again focused preventing bankruptcy and the facilitation of reorganization.

Bankruptcy Law, Other Justice, Public Order, and Safety Activities

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