The English High Court has considered, on appeal, whether a foreign judgment constitutes a "debt" for the purposes of a bankruptcy petition.

Background

A bankruptcy petition served by Servis-Terminal LLC (ST) was based on a Russian court judgment obtained against Drelle, a former director of ST. The judgment had been upheld following appeals to superior courts in Russia.

There was no evidence that Drelle would be able to pay the judgment debt which was considerably more than the bankruptcy threshold.

Appeal

Following the launch of its public consultation in October 2023, the UK Jurisdiction Taskforce has now published its latest Legal Statement on the treatment of Digital Assets under English insolvency law.

Key conclusions

The Dutch Minister of Justice has recently proposed a legislative bill that drastically reduces court fees in WHOA proceedings.

Background

The High court has recently considered whether permission should be given retrospectively to lift an administration moratorium to allow a counterclaim to proceed.

Background

The counterclaim had been brought by WWTAI against CargoLogicAir Ltd (in administration) (CLA) without the consent of the administrators or the Court. CLA contended that the counterclaim was issued in breach of the statutory administration moratorium and should be struck out.

Solely to set off

An insolvency administrator may lose their right to restitution arising from an insolvency avoidance if they are prevented from exercising the right in good faith by their conduct in the context of the conclusion of a redemption agreement, by which the creditor (and opposing party) waives rights to separate satisfaction.

Decision

A special administration regime for Payment and Electronic Money Institutions (PIs and EMIs) was established in The Payment and Electronic Money Institution Insolvency Regulations 2021 (the Regulations).

The Hungarian Supreme Court has ruled that in a lawsuit initiated by an insolvent debtor, a creditor’s claim arising after the commencement date of the liquidation cannot be enforced as a set-off claim against the debtor.

Background

A special administration regime for Payment and Electronic Money Institutions (PIs and EMIs) was established in The Payment and Electronic Money Institution Insolvency Regulations 2021 (the Regulations).

On 4 March 2024, the High Court approved the amended restructuring plan (the Plan) of Project Lietzenburger Straße Holdco S.à.r.L (the Company) a Luxembourg incorporated company part of the German Aggregate Holdings Group, despite refusing to sanction its original plan.

In 2021, the FCA published its Guidance for IPs on how to approach regulated firms. Since then, there have been changes in the legal framework affecting firm failure, changes in the regulatory framework and changes in the UK economic climate.

The FCA is consulting on amendments to reflect these changes including: