On Jun 29, 2018, Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York issued an opinion in which he granted a motion for entry of default judgment against foreign adversary proceeding defendants. Peter Kravitz v. Deacons (In re Advance Watch Company, Ltd.), Case No. 17-01137 (MG). The plaintiff, a trustee of a creditor trust, sought to recover preferential transfers from three Hong Kong defendants pursuant to Sections 547 and 550 of the Bankruptcy Code. The defendants were served personally with the summons and complaint at their Hong Kong address by a bailiff’s assistant of the High Court of Hong Kong. The defendants’ secretary accepted service of process. When none of the defendants answered or otherwise responded to the complaint, plaintiff moved for entry of default against each of them. The certificate of default, the motion for entry of default and notice of presentment of default (the “Default Papers”) were served on each defendant in Hong Kong by U.S. Mail. The defendants did not respond to or otherwise appear in connection with the Default Papers. Accordingly, plaintiff moved for entry of default judgment in accordance with Rule 55(a) of the Federal Rules of Civil Procedure (the “Civil Procedure Rules”) and Rule 7055 of the Federal Rules of Bankruptcy Procedure.
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