The filing mandates a hold-and-review framework. Once the court authorizes the procedure, the trust will send a “Restricted Jurisdiction Notice” to every creditor address on record in an affected country.
The notice will explain the basis for the designation and set an objection deadline of at least 45 days before the notice’s date.
Creditors who object must submit a sworn statement accepting the jurisdiction of the US court.
During the objection period, the trust will suspend all distributions linked to the challenged claim. If the dispute remains unresolved on a distribution record date, the withheld amount and any accrued interest revert to the estate.
If a creditor files a timely objection, the trust must seek a court ruling on whether its determination of restricted jurisdiction is reasonable.
The filing warns that failure to object will cause an automatic forfeiture once the objection deadline passes. Creditors who lose the dispute face the same outcome.
The trust defines service of notice as complete once mail or email reaches the last address on file, referring to the effort as “commercially reasonable.”
Kavuri said that the 49 jurisdictions represent about 5% of allowed claims, but 82% of their dollar value sits in China.
The creditor advocate summarized the trust’s playbook. The process involves obtaining a legal opinion on each jurisdiction, distributing it where feasible, and formally disputing claims when residence in a blocked market is confirmed.
The filing mirrors that outline, stating that claims will remain “Disputed Claims until the status of the Potentially Restricted Foreign Jurisdiction is resolved and the Claim is otherwise Allowed or disallowed.”
