10 November 2014

CDP - Cross-Border Insolvency: Privy Council Slam the Door on Bermuda’s Modified Universalism Approach

The Judicial Committee of the Privy Council (Lords Neuberger, Mance, Clarke, Collins and Sumption) has delivered an important judgment (1) about the jurisdiction of the Bermuda court to assist foreign liquidators by ordering the production of documents and information by persons in Bermuda and (2) defining the common law powers of assistance to foreign liquidators.

The interplay (or conflict) between the decisions of the Privy Council and the UK Supreme Court in the following cases has been a source of great debate and litigation in the world of cross-border insolvency: Cambridge Gas v Navigator [2007] 1 AC 508, Rubin v Eurofinance [2012] UKSC 46 and Al Sabah v Grupo Torras [2005] 2 AC 333. The Privy Council has now provided some clarity to this area of the law.

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