Complex intercorporate structures and related financings pose specific challenges in the cross-border insolvency context. Where a number of affiliates are liable for the debts of a common corporate enterprise, complete insolvency relief requires all of the entities to achieve insolvency protection in all necessary jurisdictions.

These challenges were on display in Hon. Martin Glenn’s recent decision in In re Olinda Star Ltd. Not only does this decision demonstrate potential hurdles in achieving broad intercompany insolvency relief, it also demonstrates that if at first you do not succeed in obtaining that relief, you might be able to try again.

Originally published in the ABI Journal - August 2020.