Authority of United States Bankruptcy Courts to Stay International Arbitral Proceedings

Abstract

Part I analyzes the decision of a U.S. bankruptcy court in Springer Penguin that stayed an international arbitration proceeding. Part II examines the Tribunal\u27s denial of the stay in the Behring award. Part III suggests that the Tribunal\u27s reasoning in deying applicability of the stay is consistent with recent U.S. policy favoring international arbitration of commercial disputes. This Note concludes that the interests involved in fostering international commercial arbitration mandate that once an arbitration clause is found to be enforceable, the arbitration should not be stayed by a petition in a U.S. bankruptcy court