In re Octaviar Administration Pty Ltd., 511 B.R. 361

Octaviar Administration Pty Ltd (in liquidation), an Australian company, is in an Australian liquidation; its liquidators (Barnet & Fletcher) sought recognition of that foreign main proceeding in the SDNY under Chapter 15.
Drawbridge (and affiliates) were defendants in related Australian litigation; the Foreign Representatives also brought related claims in U.S. federal and New York state court against Drawbridge and U.S. entities.
The Bankruptcy Court initially granted recognition (Octaviar I), but the Second Circuit in Barnet held that section 109(a) (debtor must "reside, have a domicile, place of business, or property in the United States") applies to Chapter 15 and remanded because Octaviar had not shown such U.S. nexus.
The Foreign Representatives filed a new petition (Octaviar II) and demonstrated Octaviar had U.S. "property" in the form of (1) asserted and filed causes of action in U.S. courts and (2) a USD$10,000 retainer held in a New York client trust account.
Drawbridge argued (inter alia) that the claims were only potential (insufficient situs), and that the retainer was a manufactured, bad-faith transfer to create eligibility; Drawbridge also sought dismissal under section 305(a)(2).
The Bankruptcy Court granted recognition of the Australian proceeding as a foreign main proceeding, holding Octaviar satisfied section 109(a) because its claims and the retainer constituted property in the United States and Chapter 15 policy supported recognition.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether section 109(a) applies to Chapter 15 recognition	Barnet & Fletcher: Chapter 15 recognition should be available without U.S. nexus	Drawbridge: Section 109(a) requires U.S. nexus and applies	Court follows Second Circuit: section 109(a) applies to Chapter 15 (per Barnet)
Whether Octaviar had "property in the United States" under §109(a)	Octaviar: claims filed in U.S. courts and causes of action are property located in U.S.	Drawbridge: claims were only potential or located in Australia; situs favors Australia	Held: filed U.S. actions and causes of action constitute U.S. property; §109(a) satisfied
Whether a prepetition retainer in a U.S. trust account can satisfy §109(a)	Octaviar: $10,000 retainer in NY account is U.S. property and legitimate	Drawbridge: retainer was a manufactured transfer to "game" §109(a) and done in bad faith	Held: retainer is U.S. property; transfer made in good faith and amount need not be substantial under §109(a)
Whether Chapter 15 recognition should be denied as abuse or dismissed under §305(a)(2)	Octaviar: recognition furthers Chapter 15 goals and enables trustees to pursue claims for creditors	Drawbridge: petition is abuse of process; dismissal appropriate to prevent forum-shopping	Held: recognition consistent with §1501 goals; dismissal not warranted here (defendant may raise defenses in U.S. litigation)

Drawbridge Special Opportunities Fund LP v. Barnet, 737 F.3d 238 (2d Cir. 2013) (holds §109(a) applies to Chapter 15; remands for §109(a) showing)
Morning Mist Holding Ltd. v. Krys (In re Fairfield Sentry, Ltd.), 714 F.3d 127 (2d Cir. 2013) (discusses Chapter 15 recognition principles and limits)
Seward v. Devine, 888 F.2d 957 (2d Cir. 1989) (intangible causes of action constitute property of the estate)
In re Yukos Oil Co., 321 B.R. 396 (Bankr. S.D. Tex. 2005) (prepetition transfers/creation of U.S. entity and funds can supply §109(a) nexus; court may still dismiss on other grounds)
In re Global Ocean Carriers Ltd., 251 B.R. 31 (Bankr. D. Del. 2000) (U.S. bank accounts and similar minimal property can satisfy §109(a) though other relief may be denied)
In re Head, 223 B.R. 648 (Bankr. W.D.N.Y. 1998) (refuses §109(a) nexus where alleged U.S. property interest was tenuous and inchoate)