Chapter 15

  

After half a century, Disney remade the beloved children’s classic movie, Mary Poppins. Not to be a spoiler, but from a real life perspective, it’s kind of irresponsible to make kids think that the celebratory film finale response to a father losing his job because his bank went out of business is to, uh...go fly a kite.

If a UK bank went under and US shareholders were involved, you'd better believe they wouldn’t go down without a fight. And that’s where Chapter 15 enters.

Bankruptcies can get messy, especially when large multinationals go belly up. Companies whose bankruptcies can impact international investors, especially when subject to foreign jurisdictions, can be particularly problematic.

Chapter 15 was added under the Bankruptcy Abuse Prevention and Consumer Prevention Act of 2005. Modeled on the U.N. Commission on International Trade Law’s Model Law, which a number of other countries have also signed onto, it was designed to protect US domiciled shareholders of international companies. Chapter 15 addresses cooperation with US courts during cross border insolvencies.

So Mr. Banks is going to have to go to the local pub to drown his sorrows in a pint.

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