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Cross-Border Insolvency Regulations 2006—recognition of Ukrainian bank liquidation (Re PJSC Bank Finance and Credit (in liquidation))

This is the latest in a string of decisions from the High Court recognising foreign liquidations under the Cross-Border Insolvency Regulations 2006 (CBIR 2006). The case concerned a Ukrainian bank, PJSC Bank Finance and Credit, which was in insolvent liquidation in Ukraine with an estimated deficiency to creditors of over $US 823m. Investigations into the bank indicated that it may have been involved in a multi-million-dollar fraud, resulting in monies being sent to many overseas countries, including entities incorporated and registered in England. On 11 March 2021, the English High Court considered and granted an application by the bank’s liquidators for recognition under the CBIR 2006. The case is one of the first to recognise a foreign liquidation administered by foreign representatives whose powers are distinct to one another, as opposed to being jointly held, and is a further example of a case in which administrative proceedings have been recognised under the UNCITRAL Model Law.

In this article Rowena Page analyses the background, practical implications and what the court decided. 

This article was first published by Lexis®PSL on 7 May 2021 and can be found on their website here. 

Source: Lexis®PSL

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