Bermuda Liquidation and U.S. Court Proceedings
On October 7, Northeast filed for liquidation in Bermuda after its liabilities officially outstripped its assets. Two days later, Bermuda’s Supreme Court appointed joint provisional liquidators to oversee the process, aimed at preserving assets and ensuring equitable treatment for creditors.
Seeking cross-border coordination, Northeast turned to the U.S. Bankruptcy Court for the Southern District of New York under Chapter 15, which governs foreign insolvency proceedings. The case was assigned to Judge Michael E. Wiles, who scheduled a recognition hearing for November 13.
Allitt said the Bermuda proceeding allows the company to invoke an automatic stay under Bermuda law — effectively freezing litigation and shielding assets while the wind-down process unfolds.
Legal Counsel and Next Steps
The foreign representative in the case is represented by Glenn S. Walter of Honigman LLP. Representatives for the hospitals, the UJA Federation, and other stakeholders have not yet commented on the filings.
If the New York court grants recognition, it will strengthen the Bermuda liquidation’s legal standing in the U.S., ensuring that creditors and claimants adhere to a unified, court-supervised process.
The Northeast Insurance Child Abuse bankruptcy marks one of the most significant financial aftershocks of the Child Victims Act, underscoring how a single change in state law can send ripples across international financial and legal systems.
