Companies From Afar Tap Houston Bankruptcy Court Despite Minimal Local Ties

Companies are tapping Houston’s bankruptcy court by setting up minimal business ties, such as a co-working address or hastily formed entities, to capitalize on debtor-friendly laws.

In November, two Swedish companies—debt collector Intrum and electric-vehicle battery maker Northvolt—filed for bankruptcy in Houston, seeking to access the benefits of chapter 11. The Houston bankruptcy court in the Southern District of Texas is particularly attractive because of the predictability of judicial assignments, with complex cases assigned to one of two judges.