Stay of proceedings granted under Insolvency Act 1986 may have extra-territorial effect
By Chris Boyle
The High Court has held that in certain circumstances the European Insolvency Regulations 1346/2000/EC may effectively extend the jurisdictional reach of the English courts so as to grant a stay of proceedings not only in England but in other member states, having regard to section 130(2) of the Insolvency Act 1986. In these circumstances, the permission of the High Court that may be required before insolvency proceedings can be brought against the company in another member state in which the regulation applies (ARM Asset Backed Securities SA  EWHC 1097).
ARM Asset Backed Securities was a company incorporated in Luxembourg that invested funds (that it raised in bond issues) in the US life insurance market. ARM got itself into difficulties when it could not service and repay its bonds in full, which led the directors to submit a petition to the High Court for winding up of the company on just and equitable grounds (section 221(5) of the Insolvency Act)…
Click on the link below to read the rest of the Bristows briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Bristows
News from The Lawyer
Briefings from Bristows
A recent decision may result in a potentially more expansive basis for establishing jurisdiction over defendants in Europe.
Where monies are improperly paid out of a company, they may be traced through various accounts to the end recipient, even if each stage in the laundering cannot be identified.