Bringing Avoidance Actions Against Foreign Transferees: Choice of Forum, Personal Jurisdiction, Discovery and More

In today’s global economy, it is increasingly commonplace for bankruptcy estate representatives to be faced with the decision to pursue U.S. avoiding powers against foreign transferees.

Avoidance actions against foreign defendants can be filed in the U.S., the defendant’s home country or another country where the defendant holds assets. Debtors-in-possession, trustees, authorized committees and liquidating agents must consider a number of issues in choosing the appropriate forum.

Key issues include obtaining personal jurisdiction over the foreign defendant in U.S. courts; ensuring that U.S. avoidance law is applied, whether in the U.S. or a foreign court; overcoming discovery challenges when records or witnesses are not located in the U.S.; and getting a foreign court to recognize and enforce judgments obtained in a U.S. court.

Listen as our authoritative panel of bankruptcy practitioners discusses the framework for bankruptcy debtors-in-possession, trustees, authorized committees or liquidating agents to recover assets from foreign transferees. The panel will look at key issues in pursuing foreign assets, including personal jurisdiction, choice of law, discovery tools, and enforcement of judgments.

1. Personal jurisdiction
2. Choice of law
3. Discovery tools
4. Enforcement of judgments

The panel will review these and other key issues:

• What must the bankruptcy representative establish to obtain personal jurisdiction over the foreign defendant in U.S. courts?
• What choice of law principles will determine whether the transfer in question is subject to U.S. avoidance laws?
• What discovery challenges face estate representatives when records or witnesses are not located in the U.S.?
• What challenges face estate representatives in convincing a foreign court to recognize and enforce a judgment issued by a U.S. court?