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In re Maxwell Communication Corp. PLC

United States Court of Appeals for the Second Circuit
93 F.3d 1036 (1996)


Maxwell Communication Corp. PLC (Maxwell) (debtor) was a large international communications company. Maxwell was incorporated in England, controlled by British nationals, governed by a British board, and managed in England by British executives. Maxwell filed for reorganization under chapter 11 of the bankruptcy code in United States bankruptcy court. Maxwell then also petitioned in England for administration, which is the British equivalent of a chapter 11 case. The United States judge and the English justice worked on the cases together, resulting in parallel proceedings that allowed a coordinated international reorganization. Prior to filing either proceeding, Maxwell had made three transfers to European banks totaling approximately $100 million. These transactions were negotiated and administered in England and were made to two British banks and a French bank. Maxwell sought to avoid the transfers. On appeal, the parties disputed whether United States law or English law governed Maxwell’s attempt to avoid the transfers.

Rule of Law


Holding and Reasoning (Cardamone, J.)

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