The practice of a debtor filing its Chapter 11 case in a district that the debtor believes will provide it with the greatest chance of success. A debtor often has a number of choices with respect to the district in which it will file, and critics have complained that debtors (particularly large, public companies) file their Chapter 11 cases in historically pro-debtor districts such as the District of Delaware or the Southern District of New York despite having only a very limited presence in or connection to the district selected. Forum shopping sometimes also refers to the practice of a debtor creating facts to support venue in a given district (such as moving the debtor’s principal place of business or assets to the desired district) or a debtor taking advantage of the statutory provision allowing a debtor to commence a case in any district in which a Chapter 11 case of an affiliate of the debtor is pending.
Bankruptcy Code § 1112. See also 28 U.S.C. § 1408, Bad Faith Filing, Dismissal, Jurisdiction.