‘Bankruptcy Tourists’ Battle for Assets From Caymans to Marshall Islands

  • Elliott-backed restructuring latest ‘bankruptcy tourism’ spat
  • Greek shipping magnate Economou pursued over $370 million
The Ocean Rig Corcovado, an open drillship owned by Ocean Rig UDW Inc., which was used by Cairn Energy Plc in their offshore operations in Greenland. The U.S. Geological Survey estimates there could be as much as 50 billion barrels of oil and gas beneath Greenland’s waters.
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A battle of so-called bankruptcy tourists has erupted in New York court, with unclear consequences for global companies and their bondholders.

On Thursday, New York bankruptcy Judge Martin Glenn refused to issue a ruling on a request by Ocean Rig UDW Inc. to block a lawsuit in the Marshall Islands that it said threatens a $3.7 billion restructuring approved in Cayman Islands Courts. Glenn said he would think about the “extraordinary” issues the case raised, possibly ruling later.