Cross-Border Strategy: O Canada—U.S. Companies Look North for Main Insolvency Proceedings
Author: Madlyn Gleich Primoff.; Alexander Rich.; Sarah Margolis.
Source: Volume 42, Number 01, January 2026 , pp.1-6(6)
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Abstract:
This article examines the emerging trend of U.S.-based companies with Canadian ties initiating primary insolvency proceedings in Canada and seeking recognition in the United States under Chapter 15 of the U.S. Bankruptcy Code. As described herein, this two-step strategy enables debtors to take advantage of the flexibility and efficiency of Canadian restructuring regimes, while securing key U.S. bankruptcy protections.Keywords: Primary Insolvency Proceedings; Section 363 Sales Under Chapter 15; “Center of Main Interests”; Li-Cycle Holdings Corp; In re Iovate Health Sciences International Inc.; Giftcraft Ltd. In Giftcraft Ltd.
Affiliations:
1: Freshfields US LLP; 2: Freshfields US; 3: Freshfields US.