objected to the petition under chapter 15 of the Bankruptcy Code seeking recognition of debtor’s the foreign proceeding. Ashapura Minechem Ltd. is a mining and industrial corporation (“Ashapura”) headquartered in Mumbai, India. In May 2011, Ashapura voluntarily filed a reference petition before the Board for Industrial and an agency authorized Financial Reconstruction (the “BIFR”), to function as an administrative tribunal under the Sick Industrial Companies (Special On October 4, 201, Chetan Shah, in his capacity as foreign Provisions) Act, 1985 (“SICA”). representative of Ashapura, filed a petition seeking recognition of proceeding under Ashapura’s SICA to be recognized as a foreign main proceeding under Section 1502(4) of the Bankruptcy Code. Opposition to Recognition The petition was opposed by two of largest creditors, Armada (Singapore) Ashapura’s and The underlying dispute between Pte. Limited (“Armada”) Eitzen Bulk A/S (“Eitzen”). Eitzen, a Danish shipping company, and Ashapura arose under a Contract of Affreightment dated which included an express contractual arbitration/jurisdiction January 18, 2008 (a “COA”), clause providing for London arbitration with English law to apply. Under the COA, the parties agreed that Eitzen would provide a number of of cargo (i.e., bauxite) to and “liftings” Ashapura’s from various ports. Ashapura, however, consistently declared to the government of Gujarat (the state in India where the bauxite was mined) that the bauxite it was exporting was being sold locally, so as to pay a lower rate of royalties to the government. When the Gujarat government learned of false declarations, it blocked Ashapura from making further exports until Ashapura’s Ashapura paid past due royalties. This led to breach of the COA, since it had no Ashapura’s bauxite to ship. On October 23, 2008, in accordance with the provisions of the COA, Eitzen
objected to the debtor’s petition under chapter 15 of the Bankruptcy Code seeking recognition of the foreign proceeding. Ashapura Minechem Ltd. (“Ashapura”) is a mining and industrial corporation headquartered in Mumbai, India. In May 2011, Ashapura voluntarily filed a reference petition before the Board for Industrial and Financial Reconstruction (the “BIFR”), an agency authorized to function as an administrative tribunal under the Sick Industrial Companies (Special Provisions) Act, 1985 (“SICA”). On October 4, 201, Chetan Shah, in his capacity as foreign representative of Ashapura, filed a petition seeking recognition of Ashapura’s proceeding under SICA to be recognized as a foreign main proceeding under Section 1502(4) of the Bankruptcy Code. Opposition to Recognition The petition was opposed by two of Ashapura’s largest creditors, Armada (Singapore) Pte. Limited (“Armada”) and Eitzen Bulk A/S (“Eitzen”). The underlying dispute between Eitzen, a Danish shipping company, and Ashapura arose under a Contract of Affreightment dated January 18, 2008 (a “COA”), which included an express contractual arbitration/jurisdiction clause providing for London arbitration with English law to apply. Under the COA, the parties agreed that Eitzen would provide a number of “liftings” of Ashapura’s cargo (i.e., bauxite) to and from various ports. Ashapura, however, consistently declared to the government of Gujarat (the state in India where the bauxite was mined) that the bauxite it was exporting was being sold locally, so as to pay a lower rate of royalties to the government. When the Gujarat government learned of Ashapura’s false declarations, it blocked Ashapura from making further exports until Ashapura paid past due royalties. This led to Ashapura’s breach of the COA, since it had no bauxite to ship. On October 23, 2008, in accordance with the provisions of the COA, Eitzen
18222296v1%20-%20Use%20of%20Arbitration%20Procedures%20in%20International%20Insolvency%20Cases%20-%20Stacy%20Lutkus.DOCX