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Opinion analysis: Justices narrow bankrupts’ power to rescind contracts in bankruptcy – Section 365 of the Bankruptcy Code gives the debtor an explicit right to “reject” contracts, and tells us that rejection amounts to a “breach” of the contract, which gives the nonbankrupt counterparty.
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A foreign company may choose to file a case under Chapter 7 or Chapter 11 of the US Bankruptcy Code if its assets or entanglements with US commerce are sufficiently complex. A foreign company may choose to file a Chapter 15 proceeding if an insolvency case is pending in another country.
Avoidance Powers Under Section 544 of the Bankruptcy Code In. – Upon the filing of a bankruptcy petition, the Bankruptcy Code vests a debtor-in-possession (DIP) with unique remedies otherwise unavailable to a debtor outside of bankruptcy. Among these remedies is the power to alter the legal effect of a pre-petition transfer, including the transfer of a security.