HQ 223582: Continuous Bond; Bankruptcy; Debtor in Possession

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                           HQ 223582
                         March 25, 1992

BON-2-CO:R:C:E  223582 SLR

CATEGORY: Entry/Bonds

Mr. John J. Sheppard
Attorney-in-Fact
American Motorists Insurance Company
One World Trade Center, Suite 2121
New York, NY   10048

RE:  Continuous Bond; Bankruptcy; Debtor in Possession

Dear Mr. Sheppard:

     This is in response to your November 15, 1991 letter
regarding continuous bonds and Chapter 11 bankruptcy.

     According to your letter:

     1)   Importer ABC Company has a continuous bond in effect
from 01-02-90 to 01-01-91.

     2)   Importer files Chapter 11 on 06-01-90.

     3)   Court approves bankruptcy and issues a notice that
ABC Company, Inc., is D.I.P. (debtor in possession).

     4)   Broker makes an entry on 06-02-90 in the name of 
ABC Company, Inc.

     You posit that if the name is now ABC Company, Inc., D.I.P.,
then it is a different corporation and a new bond must be filed.
We disagree.

     A debtor in possession is the same legal entity as the
prebankruptcy company.  NLRB v. Bildisco & Bildisco, 465 U.S.
513, 104 S.Ct. 1188 (1984).  Consequently, an entry could be made
using the existing bond as security.  There would be no need 
for Customs to cancel the existing bond or to demand added
security.  Additionally, as "debtor in possession" status does 
not result in a company name change, a rider need not accompany
the existing bond.

                                Sincerely,



                                William G. Rosoff, Chief
                                Entry Rulings Branch