Strategically Surviving Bankruptcy during a Global Financial Crisis: The Importance of Understanding Chapter 15

Jocelyn Evans and Aberdeen Leila Borders

Journal of Business Research, 2014, vol. 67, issue 1, 2738-2742

Abstract: Chapter 15 of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act allows foreign courts more power in cases that include foreign multinational firms. U.S. businesses unexpectedly have to file a claim in another country with bankruptcy rules that are sometimes drastically different from those in U.S. courts. This paper outlines the different bankruptcy laws in selected countries and exemplifies how some countries place U.S. creditors at a disadvantage relative to employees and stockholders. This knowledge should be incorporated into management's strategic contingency plans in the case of supplier or business customer default. During periods of global financial instability such as the 2008 financial crisis, an understanding of Chapter 15 is essential.

Keywords: Financial crisis; Strategic planning; Bankruptcy; International business relationships (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:67:y:2014:i:1:p:2738-2742

DOI: 10.1016/j.jbusres.2013.03.024

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