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Unrecognised Foreign Judgments and Awards and Liquidation Proceedings in the British Virgin Islands

In Servis-Terminal LLC v Drelle [2025] EWCA Civ 62, the English Court of Appeal held that a bankruptcy petition cannot be presented based on an unsatisfied foreign judgment where the foreign judgment has not been recognised in that jurisdiction. This update considers the effect that decision may have on statutory demands and applications for the appointment of liquidators based on unrecognised foreign judgments in the British Virgin Islands.

The Hierarchy of the Courts of the Eastern Caribbean

British Virgin Islands, Insolvency & Restructuring, Litigation, Mourant Ozannes, Liquidation, Insolvency
Brave new world: restructuring officers in the Cayman Islands

The Grand Court of the Cayman Islands has issued its first judgment appointing Restructuring Officers under the new section 91B of the Cayman Islands Companies Act, which came into force on 31 August 2022.

Introduction

Cayman Islands, Insolvency & Restructuring, Litigation, Mourant, Liquidation, Provisional liquidation, Winding-up
The continuing tension between arbitration agreements and liquidation proceedings

Two decisions handed down on the same day – one by the Eastern Caribbean Court of Appeal and the other by the Commercial Division of the High Court – illustrate the approach of British Virgin Islands Courts to applications to appoint liquidators in circumstances where the subject matter of a dispute as to the existence of a debt falls within the scope of an arbitration agreement.

Introduction

British Virgin Islands, Arbitration & ADR, Insolvency & Restructuring, Litigation, Mourant, Liquidation, Articles of association, Insolvency, UNCITRAL
Supreme Court Sides with Trademark Licensees in Rejection Dispute

The Supreme Court issued its much-anticipated ruling yesterday in the First Circuit case of Mission Product Holdings, Inc. v. Tempnology, LLC, resolving a circuit split that had developed on “whether [a] debtor‑licensor’s rejection of an [executory trademark licensing agreement] deprives the licensee of its rights to use the trademark.” And it answered that question in the negative; i.e., in favor of licensees.

USA, Insolvency & Restructuring, Litigation, Trademarks, Weil Gotshal & Manges LLP
The Devil Is in the Details … The Doctrine of Recoupment

When it comes to offsets, bankruptcy law provides for two distinct remedies: (1) setoff and (2) recoupment.

Setoff allows a creditor to reduce the amount of prepetition debt it owes a debtor with a corresponding reduction of that creditor’s prepetition claim against the debtor. The remedy of setoff is subject to the automatic stay, as well as various conditions under § 553 of the Bankruptcy Code — including that it does not apply if the debts arise on opposite sides of the date on which the debtor’s case was commenced.

USA, Banking, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Medicare