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In re McLean Industries, Inc.

United States Bankruptcy Court for the Southern District of New York
68 B.R. 690 (1986)


United States Lines, Inc. (Lines) (debtor) was a worldwide shipping company. Lines filed for bankruptcy, and the bankruptcy court issued an order establishing the automatic stay. GAC Marine Fuels, Ltd. (Marine) (creditor) was a marine-fuel supplier. Prior to the bankruptcy, Marine had done business with Lines, and Lines owed debts to Marine. Marine was organized in the United Kingdom, with its principal place of business in London. However, Marine conducted extensive business in the United States. A Marine affiliate also had an office in New Jersey. When Lines told Marine that it had filed for bankruptcy, Marine demanded payment on Lines’s outstanding debts. If Lines failed to pay, Marine threatened to file actions abroad to arrest Lines’s ships in foreign jurisdictions. Lines did not pay, and Marine had Lines’ ships arrested at foreign ports. Lines sought an injunction to restrain Marine and an order holding Marine in contempt for violating the automatic stay. Marine opposed the motion, arguing that the court lacked personal jurisdiction.

Rule of Law


Holding and Reasoning (Buschman, J.)

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