I guess we bankruptcy attorneys in Indiana would be more likely to have noticed this particular news item in the New York Times the other day – "Chinese Solar Giant's Bankruptcy Presents a Test".
Since I’d asked:the good bankruptcy attorneys who work in all five Zuckerberg bankruptcy law offices to be on the lookout for articles – in magazines, newspapers, and on the Web – that I can use to help Bankruptcy in Indiana readers understand the process better, this is one interesting piece that surfaced through my Richmond, Indiana bankruptcy lawyer colleague.
By way of background, the Suntech Power Holdings company has its main operating center in China. However, this is not a Chinese company, but a part of a holding company out of the Cayman Islands. The company sold bonds to American investors, and when those bonds came due on March 15 of this
year, there was no money to pay So, now, the solar company is declaring bankruptcy
So that Bankruptcy in Indiana readers will "get" why this presents a dilemma, filing a bankruptcy can't be done just anywhere. For the past 26+ years, for example. I've practiced Indiana bankruptcy law in the Southern Bankruptcy District of Indiana.
For an American, the rule applies that you must live in a state two years before you can use its exemptions. If you don't qualify in anyone state, the court will use federal exemptions.
In the case of Suntech, not only are we talking about different states, but about three different countries, each of which operates under a different set of bankruptcy laws. The Suntech operating company is officially headquartered in the Cayman Islands, the company filing for bankruptcy is in China, and the creditors (the bond investors) are in the U. S.!
I want to remind readers that, while I've helped hundreds of business owners file small business bankruptcy in Indiana, our Mark Zuckerberg associates aren't involved with giant multi-national companies. The lesson, though, for my Indiana readers is simply that the new bankruptcy laws of China, just like the new bankruptcy laws of Indiana, are designed to treat all parties as fairly and as equally as possible. All the three countries are feeling their way in this unusual case trying to accomplish just that. The bondholders would like to see the bankruptcy case filed in New York, for example. China has its own restructuring law that was designed to incorporate the best features of British and American law, according to New York Times reporter Stephen Lubben ..
In any legal proceeding, needless to say, all parties are interested in "winning". But bankruptcy is no game – it's a legal system set up to provide a compromise and a safety net for honest debtors.
And so, even though the story is far from the typical case handled by us Indiana bankruptcy lawyers, I thought it would be good food for thought for Bankruptcy in Indiana readers. After all, this "Chinese solar giant" test is certainly going to "test" everyone's ability to compromise and provide as much of a safety net for everyone as possible.
Categorised in: Bankruptcy Indiana
This post was written by Mark Zuckerberg