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They have a US division. Multinationals going bankrupt seems like there will be issues about which group owns what and the various obligations between them.

by HWR_14 4y ago

freejazz 4y ago
So the bankruptcy of the US division will have US law, the others will according to their own jurisdictions. > Multinationals going bankrupt seems like there will be issues about which group owns what and the various obligations between them. Yes, which will be decided according to the bankruptcy law of the corp's incorporation, not the one it chooses. You are confusing choice of law with venue.
- HWR_14 4y ago
  I actually meant that it's really unclear whether FTX-US or FTX-Bahamas (or other subgroups) owns any asset. That's what I meant by "which group owns what".
  - freejazz 4y ago
    Okay, I still don't understand if you got the point that filing for bankruptcy in a DE court doesn't mean you get DE bankruptcy law applied.
    - HWR_14 4y ago
      You're right, I never addressed that. I didn't know that before this whole thing started, and that seems weird to me. But also it makes some sense that otherwise both divisions would need to be in different courts in different countries and that seems even worse. I assume there is a US or Delaware law that lets them follow the law of other jurisdictions in cases like this. Almost like an economic extradition. I assume the Bahamas would send their own lawyer(s)? But yes, I think I get your point. Thanks for making it, and again for following up.
      - freejazz 4y ago
        It's called choice of law. Happens in US courts all of the time, parents enforcing an out-of-state divorce court parental agreement after they moved, two people from Ohio who got into a crash in Indiana... us enforcing in Florida, a commercial contract drafted under new york law, just some examples of where a court would use law from a different jurisdiction. Bahamas don't need to send their own attorneys if they don't want to... they aren't necessarily a party to the case. Here, FTX is opting to have a US disposition of the Bahamian bankruptcy code, so what would Bahama have to send attorneys for? In this case, its still adversarial between the creditors and FTX, so there will be parties arguing for the correct application of law.

They have a US division. Multinationals going bankrupt seems like there will be issues about which group owns what and the various obligations between them.

by HWR_14 4y ago

They have a US division. Multinationals going bankrupt seems like there will be issues about which group owns what and the various obligations between them.

freejazz 4y ago

So the bankruptcy of the US division will have US law, the others will according to their own jurisdictions. > Multinationals going bankrupt seems like there will be issues about which group owns what and the various obligations between them. Yes, which will be decided according to the bankruptcy law of the corp's incorporation, not the one it chooses. You are confusing choice of law with venue.

HWR_14 4y ago
I actually meant that it's really unclear whether FTX-US or FTX-Bahamas (or other subgroups) owns any asset. That's what I meant by "which group owns what".
- freejazz 4y ago
  Okay, I still don't understand if you got the point that filing for bankruptcy in a DE court doesn't mean you get DE bankruptcy law applied.
  - HWR_14 4y ago
    You're right, I never addressed that. I didn't know that before this whole thing started, and that seems weird to me. But also it makes some sense that otherwise both divisions would need to be in different courts in different countries and that seems even worse. I assume there is a US or Delaware law that lets them follow the law of other jurisdictions in cases like this. Almost like an economic extradition. I assume the Bahamas would send their own lawyer(s)? But yes, I think I get your point. Thanks for making it, and again for following up.
    - freejazz 4y ago
      It's called choice of law. Happens in US courts all of the time, parents enforcing an out-of-state divorce court parental agreement after they moved, two people from Ohio who got into a crash in Indiana... us enforcing in Florida, a commercial contract drafted under new york law, just some examples of where a court would use law from a different jurisdiction. Bahamas don't need to send their own attorneys if they don't want to... they aren't necessarily a party to the case. Here, FTX is opting to have a US disposition of the Bahamian bankruptcy code, so what would Bahama have to send attorneys for? In this case, its still adversarial between the creditors and FTX, so there will be parties arguing for the correct application of law.