An appearance in a bankruptcy court by a foreign representative in 
connection with a petition or request under section 303, 304, or 305 of 
this title does not submit such foreign representative to the 
jurisdiction of any court in the United States for any other purpose, 
but the bankruptcy court may condition any order under section 303, 304, 
or 305 of this title on compliance by such foreign representative with 
the orders of such bankruptcy court.

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2561.)


                      Historical and Revision Notes

                        senate report no. 95-989

    Section 306 permits a foreign representative that is seeking 
dismissal or suspension under section 305 of an ancillary case or that 
is appearing in connection with a petition under section 303 or 304 to 
appear without subjecting himself to the jurisdiction of any other court 
in the United States, including State courts. The protection is 
necessary to allow the foreign representative to present his case and 
the case of the foreign estate, without waiving the normal 
jurisdictional rules of the foreign country. That is, creditors in this 
country will still have to seek redress against the foreign estate 
according to the host country's jurisdictional rules. Any other result 
would permit local creditors to obtain unfair advantage by filing an 
involuntary case, thus requiring the foreign representative to appear, 
and then obtaining local jurisdiction over the representative in 
connection with his appearance in this country. That kind of bankruptcy 
law would legalize an ambush technique that has frequently been rejected 
by the common law in other contexts.
    However, the bankruptcy court is permitted under section 306 to 
condition any relief under section 303, 304, or 305 on the compliance by 
the foreign representative with the orders of the bankruptcy court. The 
last provision is not carte blanche to the bankruptcy court to require 
the foreign representative to submit to jurisdiction in other courts 
contrary to the general policy of the section. It is designed to enable 
the bankruptcy court to enforce its own orders that are necessary to the 
appropriate relief granted under section 303, 304, or 305.