Berau Capital Resources Pte Ltd (“Berau”), a special purpose vehicle incorporated to raise funds on behalf of an Indonesian mining and coal company, initiated proceedings in the High Court of the Republic of Singapore pursuant to section 210(10) of the Companies Act on July 4, 2015.

On July 10, 2015, Berau filed a petition for recognition of the Singapore proceeding in the Bankruptcy Court for the Southern District of New York (the “New York Bankruptcy Court”) under Chapter 15 of the Bankruptcy Code.  In a decision makes it more likely that foreign companies with New York law governed securities will be able to utilize Chapter 15 even if they otherwise have no U.S. connections, the New York Bankruptcy Court granted recognition to Berau’s Singapore proceeding and held that not only had Berau satisfied Bankruptcy Code section 109(a) because it had established an attorney retainer account in New York, but that Berau’s indenture governed by New York law and containing a New York choice of forum clause constituted Berau’s property in New York that also satisfied Bankruptcy Code section 109(a).  Continue reading