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IT security company, CrowdStrike revealed in its 2021 Global Security Attitude Survey that Australia is one of the world’s hottest targets of ransomware attacks, with 67% of respondents admitting that their organisation had suffered an attack in 2021. This puts Australia in second place amongst countries surveyed,1 with only India faring worse.
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Companies are in a war but unfortunately only one side knows it. It is critical that cyber security be the number one risk issue for all organisations for 2021 as the cyber carnage is just going to continue. Organisations need to be focussed on training their staff. Good training programs will significantly mitigate the risk of cyber breach.
US courts have regularly held that the distinction between foreign main and foreign nonmain proceeding may not be significant because a court can grant substantially the same relief in both instances. In that regard, the same judge from the US Bankruptcy Court for the Southern District of New York in the Olinda Star decision also issued an order enforcing a Brazilian restructuring plan of a Luxembourg member of the Constellation Group after recognizing its Brazilian proceeding as a foreign nonmain proceeding.
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Thereafter, the US Bankruptcy Court for the Southern District of New York issued an order recognizing the Brazilian proceeding as a foreign main proceeding and enforcing the Brazilian plan in the US. Following an appeal in Brazil, the Brazilian plan was annulled. Consequently, the US court suspended its order enforcing the plan in the US. Lupatech, however, proposed a modified plan that was approved by creditors and the Brazilian court. The US bankruptcy court, in turn, issued an order enforcing the modified plan and granting additional relief, including authorizing certain US parties to take any "ministerial actions" required under the amended plan.
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Much of the uptick in cyber-crime in 2021 has been chalked down to COVID-19 related issues, including the increase of people working from home with “weaker” cyber-security in place and the propensity for scammers to use COVID-19 as a tool to leverage fear. Evidently, between 10 and 26 March 2021, ACSC reports that it received over 45 pandemic themed cybercrime and cyber security incident reports, whilst the ACCC Scamwatch received over 100 reports of COVID-19 themed scams.
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The cases above represent the continued activity of US Chapter 15 courts and the expanded Chapter 15 jurisprudence now 15 years on since enactment in the US. Insolvency and restructuring laws and cases are truly global in nature. Given the expansion of the Model Law to many jurisdictions and its international origin, it is likely that more foreign courts will consider the US Chapter 15 jurisprudence when considering future requests for recognition or ancillary relief in their own jurisdictions. Consequently, a US court's decisions in the Chapter 15 context will likely have broad ramifications and will impact how other courts interpret the Model Law.