CLOSING A CHAPTER 15 CASE – Amended [August 1, 2013]
Closing the Case. In a case under chapter 15 of the Bankruptcy Code, the Court shall close the case when there is a presumption under Bankruptcy Rule 5009(c) that the case has been fully administered or the Court, after notice and a hearing, determines that the purpose of the foreign representative’s appearance in the chapter 15 case has been completed, whichever is earlier.
Reopening the Case. A case under chapter 15 may be reopened to provide appropriate relief to the foreign representative or for other cause.
This rule was added in 2013 to provide for the closing of a chapter 15 case, as well as reopening a case for cause.
The Bankruptcy Code and Bankruptcy Rules do not provide for the closing and reopening of a chapter 15 case, but impose certain reporting requirements on the foreign representative so that the Court is aware of the status of the case. In particular, section 1518 of the Bankruptcy Code imposes on the foreign representative the duty to promptly file a notice informing the Court of any substantial change in the status of the foreign proceeding or of the foreign representative’s appointment, and of any other foreign proceeding regarding the debtor. Bankruptcy Rule 2015(d) requires the filing of such reports within 14 days after the foreign representative becomes aware of such information. Under Bankruptcy Rule 5009(c), the foreign representative is also required to file and transmit to the United States Trustee a final report describing the nature and results of the foreign representative’s activities in the Court when the purpose of the foreign representative’s appearance in the Court is completed, and to give notice of the report to certain parties. The foreign representative must file a certificate with the Court certifying that such notice has been given. Under Bankruptcy Rule 5009(c), if no objection has been filed within 30 days after the certificate is filed, there is a presumption that the case has been fully administered. At that time, the case should be closed. However, even in the absence of a certificate, the Court has the discretion, after notice and a hearing, to close the case if it finds that the purpose of the foreign representative’s appearance in the case has been completed.