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In re McLean Industries, Inc.

United States Bankruptcy Court for the Southern District of New York

68 B.R. 690 (1986)

Relevant factsFree

United States Lines (Lines) (debtor), a worldwide shipping company, filed for bankruptcy, triggering an automatic stay. GAC Marine Fuels (Marine) (creditor), a UK-organized marine-fuel supplier based in London that nonetheless conducted extensive business in the U.S. (including through an affiliate office in New Jersey), was owed money by Lines from before the bankruptcy. After learning of the bankruptcy filing, Marine demanded payment and, when Lines didn't pay, had Lines's ships arrested at foreign ports, threatening further foreign arrests. Lines sought an injunction against Marine and asked the court to hold Marine in contempt for violating the automatic stay; Marine argued the court lacked personal jurisdiction over it.

IssueFree

Whether a foreign creditor transacting business in the United States is subject to personal jurisdiction in a United States bankruptcy court.

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