§1520 Effects of Recognition of a Foreign Main Proceeding

Summary

When a foreign main proceeding is recognized, certain U.S. bankruptcy rules apply to the debtor and any of the debtor’s property inside the United States. Rules in sections 361 and 362 apply. Rules about selling or transferring assets (sections 363, 549, and 552) apply to transfers of the debtor’s U.S. property. Unless a court orders otherwise, the foreign representative may run the debtor’s business and use trustee powers under sections 363 and 552. Recognizing the foreign proceeding does not stop someone from starting a legal action in another country to protect a claim against the debtor. It also does not stop the foreign representative or anyone else from filing a U.S. bankruptcy case, filing claims, or taking other proper steps in that case.