Most of the significant maritime bankruptcies of the last five years, including Hanjin and OW Bunkers, have utilized Chapter 15 of the United States Bankruptcy Code. Debtors have filed insolvency proceedings outside of the U.S., and then used Chapter 15 to assist those proceedings. Frequently, however, U.S. Bankruptcy Courts in Chapter 15 cases have misunderstood the security rights of maritime lien holders, marine equipment lessors and other maritime creditors. At the same time, these maritime creditors have available to them strong arguments that they soon in a Chapter 15 case should be permitted to exercise their rights to arrest vessels and freights to protect their security interests, and reclaim their unpaid-for equipment (which the debtor otherwise might abandon after taking somewhere that recovery is difficult and expensive).
Simms Showers and its principals have represented major maritime credtors in every major maritime insolvency, for the last 25 years. In this article, Simms Showers Principal Steve Simms shares effective Chapter 15 strategies that he and Simms Showers effectively have exercised for those major creditors, so that maritime creditors can be well prepared for the certain, next United States Chapter 15 maritime case.
For information and advice on navigating the challenges of United States Bankruptcy Code Chapter 15 as a maritime creditor, contact Steve Simms.