Croatian Extraordinary administration proceedings recognized by the high court in England
Nov 09, 2017
Sberbank challenge rejected
His Honor Judge Paul Matthews of the UK High Court handed down his judgment today in the Agrokor d.d. English recognition application. The judgment follows a 4 day hearing which took place between 23-26 October 2017 (inclusive).
On 27 July 2017, Ante Ramljak, Extraordinary trustee of Agrokor, applied for recognition of the Croatian Extraordinary Administration Proceeding under the Cross-Border Insolvency Regulations 2006 (the CBIR) in England and Wales in respect of Agrokor d.d. The recognition application was challenged by Sberbank of Russia, the first time that an application of this kind has been challenged in England.
Sberbank opposed the application on the basis that the proceeding does not comply with the requirements of the CBIR and is contrary to the public policy of England and Wales.
The Judge rejected each of Sberbank’s arguments, finding in favour of the Extraordinary trustee and recognizing the Extraordinary Administration Proceedings in respect of Agrokor d.d, which has the effect of staying all actions brought by creditors in England and Wales.
Kirkland & Ellis acted for the Extraordinary Commissioner in the proceedings, and instructed Tom Smith QC and William Willson as counsel.