Interplay Between Russian Bankruptcy and American Fraudulent Transfer Law

Insights June 30, 2016

This article was published in the Russia and Eurasia Committee – Legislation Updates and News on the January-June 2016 edition.

Ms. Egan describes two major differences between Russian bankruptcy and American bankruptcy: (1) the initial treatment of creditors’ claims and the burden of proof to establish them; and (2) the ability of creditors to sue a debtor in foreign courts, despite the pendency of the Russian bankruptcy.  The implication is that a Russian bankruptcy will not prevent a creditor from recovering property of the debtor located in the United States.  In fact, as set forth below, the Russian bankruptcy can even help the creditor.

Access the full article here