Problem I - Cross-Border Insolvency -

In the year 2014, the Weeknd Airlines pvt. Ltd. after reviewing the market conditions and in order
to expand its business established a wholly owned subsidiary i.e. Air Hotels SDN BHD (AHSB).
AHSB was incorporated under the laws of Malaysia, having its registered office also situated there,
though it has carried a minimal amount of operation in that jurisdiction.

AHSB had sought financial assistance from several banks which are located both in USA as well
as in India, for setting up and implementation of its business. In the year 2015, lenders under a
consortium of 4 US banks which is led by Calfia Bank, granted AHSB rupee term loan to the tune
of Rs. 0.5 billion USD, in order to expand its business in USA. However as it needs to expand its
business in other jurisdictions also, it took a loan from consortium of Indian Banks, to the tune of
Rs. 300 Cr., for which corporate guarantee was also provided by its Holding Company i.e. Weeknd
Pvt Ltd.

By the end of year 2017, AHSB was known for its High Class Hotel services. Apart from that, it
has offices and assets in various parts of the world including Singapore, USA, England, Brussel
etc. It is operative in these jurisdiction through its representative offices. The company is also
operative in India and acquired certain assets in India. In addition, Board of Directors used to sit
in India office of the company and from this office itself, the BOD used to take decision with
regard to the management of the Company. In addition, its books of accounts are maintained in
India.

AHSB was also known for its timely payment of Debts. However due to a major downturn in
weeknd, the business of AHSB was also got effected. It was anticipated by its management that it
will not be able to pay its debts to concerned creditors, when it will become due. Hence the
management decided that company should undergo a restructuring process but as per the
Insolvency laws of USA, as US laws provide for speedier restructuring process and major creditors
are also situated there. Hence, for this purpose management of AHSB shifted their registered office
from Malaysia to USA.

Soon after shifting of registered office in USA, AHSB filed a voluntary bankruptcy petition under
Chapter 11 in the US Bankruptcy Court for the purpose of re-organization, as per section 1104(a)
of the US Bankruptcy Code, Ms. Olivia was appointed as Interim Trustee by the Bankruptcy Court.
Ms. Olivia soon after her appointment and after knowing that AHSB has certain assets in India,
applied to adjudicatory authority in India under article 15 of the UNCITRAL Model Law on Cross-
Border Insolvency ("Uncitral") for recognition of US Proceeding. However this application was
opposed by Indian Creditors of AHSB. The matter is pending before Adjudicating Authority for
hearing along with other applications of Weeknd Pvt Ltd.