Multi-Color and Bankruptcy Venue: New Jersey Bankruptcy Court Adopts “Asset-Based Approach to “Principal Assets Under Section 1408

In a closely followed venue dispute, the Bankruptcy Court for the District of New Jersey recently held that venue in the District was proper in the Chapter 11 cases of Multi-Color Corporation and its affiliates. The decision is significant because it offers an analytical framework for determining a debtor’s “principal assets under section 1408 of the Bankruptcy Code.

       

In a closely followed venue dispute, the Bankruptcy Court for the District of New Jersey recently held that venue in the District was proper in the Chapter 11 cases of Multi-Color Corporation and its affiliates. The decision is significant because it offers an analytical framework for determining a debtor’s “principal assets under section 1408 of the Bankruptcy Code.