Can a foreign solvent company be recognised in the UK under the Cross Border Insolvency Regulations?

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The Judge considered the above issue on an application by provisional liquidators of a Bermudan registered investment company that had been wound up on the just and equitable ground by the Bermudan courts.

The application originally came before an ICCJ who referred the matter to a High Court Judge in light of the important point of law. The ICCJ was concerned about guidance to the Model Law suggesting that "insolvency proceedings" refers to collective proceedings "commenced with respect to debtors that are in severe financial distress or insolvent".

However, Mrs Justice Falk considered the complete guidance to the Model Law and English law and other court decisions and concluded that the relevant section under Bermudan law, relied on to wind up the company, was a "law relating to insolvency" pursuant to the Model Law and a collective process meaning that the liquidation was a foreign proceeding that could be recognised by the English courts.

The Judge therefore made an order recognising the liquidation in the English courts finding that the company had its COMI in Bermuda. This is a further decision by the English courts finding a way to recognise foreign insolvency proceedings.

Re Sturgeon Central Asia Balanced Fund Limited [2019] EWHC 1215 (Ch)

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