International

Pryor Cashman client Magic Micro Co., Ltd. (“MM”), a Republic of Korea corporation, obtained a stay of proceedings in the U.S. District Court for the Southern District of New York that had been commenced by one of its creditors, Monsoon Blockchain Storage, Inc. (“Monsoon”), to confirm and enforce a $27 million U.S. arbitration award granted against MM in April 2021.

In September 2021, after issuance of the arbitration award, MM commenced proceedings to rehabilitate itself under Korean Rehabilitation and Bankruptcy Act. In September 2022, Monsoon filed a statement of claim in the rehabilitation case for the amounts awarded by the U.S. arbitrator, and later did not oppose an application by MM in the Korean rehabilitation court to treat the underlying contract with Monsoon as canceled under Korean law.

In August 2023, the District Court directed Monsoon to give notice to MM of the final deadline for consideration Monsoon’s confirmation petition. Pryor Cashman appeared in the District Court proceeding on behalf of MM and filed its opposition to confirmation of the arbitration award.

Given Monsoon’s voluntary participation in the Korean proceeding, and resting on principles of international comity in light of the similarities of the U.S. Bankruptcy Code and the Korean rehabilitation statute as they related to corporate reorganization (“rehabilitation,” under the Korean statutory scheme), the District Court stayed Monsoon’s petition pending further developments in the Korean rehabilitation case, and required MM and Monsoon to file periodic reports.

Pryor Cashman Partner Richard Levy, Jr., represented MM, assisted by Associates Andrew S. Richmond and Daniel Brenner.

Read the full court decision using the attached PDF below.