15 November 2012

NEWSFLASH: Supreme Court's decision in Rubin: an in-depth analysis

WATCH OUT FOR

The long-awaited decision of the UK Supreme Court in Rubin was finally handed down in late October, with highly significant consequences in the context of international cross-border restructurings.

The decision has proved to be more controversial than expected, and surprised many. The decision concerned the enforcement of a US clawback judgment in England but is likely to have much wider application (for example, with regard to the enforcement of foreign restructuring plans), and not just for restructurings where recognition is required in England, but also for the recognition of insolvency judgments in other common law jurisdictions.

WHY IS IT SO IMPORTANT?

The Supreme Court considered what assistance the English court can offer to jurisdictions seeking to enforce foreign insolvency orders in England (in other words how far the English court will recognise the universality of insolvency proceedings and, potentially, apply foreign insolvency laws). Controversially, it was held that the standard English rules for the recognition and enforcement of foreign judgments in England apply, meaning a foreign insolvency order will only be enforceable where the person against whom the order is made is bound by the jurisdiction of the foreign court. There was no justification, in the interests of universality of insolvency proceedings, for a wider set of rules to apply.

TO FIND OUT MORE...

For a short (six minute) video by Jennifer Marshall, Partner in A&O's Restructuring group, commenting on the consequences of the decision, click here.

For a detailed commentary on the case and an in-depth perspective from our US, UK and Asian restructuring specialists, click here.
 

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