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2021 Stroock Bankruptcy Guide

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233 behalf of the same debtor may be commenced in the U.S. if the debtor has assets in the U.S., although the bankruptcy court's jurisdiction will be limited to the debtor's assets located in the U.S. 11 U.S.C. § 1528. Chapter 15 also sets various guidelines for a U.S. court when coordinating a concurrent U.S. case and foreign proceeding. See 11 U.S.C. §§ 1529, 1530. Of particular note, subject to the rights of secured creditors or rights in rem, a creditor who receives payment in a foreign proceeding may not receive a distribution on the same claim in a U.S. case if the distribution in the U.S. case to other creditors of the same class is proportionally less than the payment such creditor received in the foreign proceeding. 11 U.S.C. § 1532. F. Cooperation with Non-U.S. Courts and Foreign Representatives Consistent with its purpose, Chapter 15 contains a number of provisions intended to foster cooperation between the U.S. court and estate representatives, on the one hand, and the non-U.S. court and foreign representatives, on the other. See 11 U.S.C. §§ 1525(a), 1526(a). Among other things, the U.S. court is expressly authorized to "communicate directly with, or to request information or assistance directly from, a foreign court or foreign representative, subject to the rights of a party in interest to notice and participation." 11 U.S.C. § 1525(b). Similarly, a U.S. representative authorized by the U.S. court to participate in a foreign proceeding may communicate directly with the non-U.S. court or foreign representative. 11 U.S.C. § 1526(b).

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