China Medical Technologies (CMT) is a Cayman Islands holding company whose operating companies sell medical equipment in China. CMT defaulted on its obligation, which caused one of its creditors to file for involuntary bankruptcy in Cayman Islands. The trustee in the Cayman bankruptcy then filed a Chapter 15 proceeding with the S.D.N.Y. Bankruptcy court, which stayed all litigation against CMT. Certain creditors challenged the automatic stay, and the bankruptcy denied the challenge.
The district court found that the denial of exemption from automatic stay was not an appeallable order.
Believe it or not, this is a fairly typical situation in which doing business with a Chinese company actually means doing business with a Cayman company and relying on methods of judicial cooperation.