UK: England and Wales: insolvency - cross border - immovable property

The ICLR has published, as part of its WLR(D) series, a summary for the recent Court of Appeal decision Kireeva v Bedzhamov [2022] EWCA Civ 35: see here. 

The court held (to quote directly from the summary): "While a foreign office holder might be able to obtain the court’s assistance either under section 426 of the Insolvency Act 1986 and common law recognition, the same assistance was not available in both positions and they could not be equated. Section 426 specifically authorised the English court to assist foreign courts sharing the same legal tradition but it could not be inferred that assistance under that provision could also be provided to immovable property without any statutory sanction to a court anywhere in the world and regardless of the legal tradition in that jurisdiction".

UK: England and Wales: foreign proceedings and solvent companies - recognition order terminated

Last year, in Bailey & Anor (As Foreign Representatives of Sturgeon Central Asia Balanced Fund Ltd), Re [2019] EWHC 1215 (Ch), [2019] WLR (D) 297, Mrs Justice Falk held, under the Cross-Border Insolvency Regulations 2006 (which implement the UNCITRAL Model Law for Cross-Border Insolvency), that it was appropriate to recognise as a foreign proceeding the liquidation, in Bermuda, of a solvent company. 

That order has been terminated by Chief Insolvency and Companies Court Judge Briggs, for the reasons set out in a judgment delivered today: Carter v Bailey & Anor (Sturgeon Central Asia Balanced Fund Ltd) [2020] EWHC 123 (Ch). Judge Briggs held that recognition was available only where it concerned proceedings relating to the resolution of the debtor's insolvency or financial distress. While the current case concerned a company being wound-up (on just and equitable grounds), that company was solvent and was not in financial distress.

To quote Judge Briggs (para. [5]): "It would be contrary to the stated purpose and object of the Model Law to interpret 'foreign proceedings' to include solvent debtors and more particularly include actions that are subject to a law relating to insolvency which have the purpose of producing a return to members not creditors".

UK: The Insolvency (Amendment) (EU Exit) Regulations 2018

The Insolvency (Amendment) (EU Exit) Regulations 2018 were laid in draft form before Parliament yesterday as part of the draft affirmative procedure: see here. The Regulations can be viewed here or here (pdf). They are made under section 8(1) of the European Union (Withdrawal) Act 2018 and make amendments to legislation in the field of cross-border insolvency in consequence of the UK's withdrawal from the European Union. A more detailed explanation of the amendments being made is available in the accompanying explanatory note: see here.

India: Insolvency Law Committee report on cross-border insolvency

The Insolvency Law Committee established by the Ministry of Corporate Affairs has published its second report: see here (pdf). The report focuses on cross-border insolvency and makes recommendations for the adoption, with some modifications, of the UNCITRAL Model Law on Cross Border Insolvency.