§1521 Relief that may be granted upon recognition

Summary

When a U.S. court recognizes a foreign bankruptcy case, it can, at the foreign representative’s request, order help to protect the debtor’s U.S. assets and the creditors. The court may pause lawsuits or other proceedings about the debtor’s assets, stop collection or execution against those assets, block transfers or other dealings with the assets, order witnesses to be examined and evidence or information to be produced, put the foreign representative or a court-appointed person in charge of U.S. assets, extend emergency relief under section 1519(a), and give other trustee-like powers except those in sections 522, 544, 545, 547, 548, 550, and 724(a). The pauses for lawsuits, execution, transfers, and the extension under 1519(a) apply only to the extent they are not already paused under section 1520(a), and injunction rules apply to those pauses. The court may also let the foreign representative handle distribution of U.S. assets if U.S. creditors’ interests are protected. For relief tied to a foreign nonmain case, the court must find it deals with assets that U.S. law says belong in that nonmain proceeding or with information needed there. The court cannot block police or regulatory actions, including criminal cases. Rights that are allowed under section 362(b) paragraphs (6), (7), (17), or (27), or under section 362(o), cannot be stayed by orders in these proceedings.