Galapagos Bidco SARL v Kebekus & ors [2021] EWHC 68 (Ch) (19 January 2021)

Galapagos Bidco SARL v Kebekus & ors [2021] EWHC 68 (Ch) (19 January 2021)

The English court has jurisdiction over Signal and Dr Kebekus under Article 8(1) of the Recast Brussels Regulation because there is a real dispute between Bidco and holders of HYN, represented by the HYN Trustee, and declaratory relief is necessary to bind all affected parties. The anchor defendants' neutrality does...

Source-derived case information.

Citation
[2021] EWHC 68 (Ch)
Parties
Claimant: Galapagos Bidco S.À. R. L.; First Defendant: Dr. Frank Kebekus; Second Defendant: GLAS Trust Corporation Limited; Third Defendant: Global Loan Agency Services Limited (Revolving Agent); Fourth Defendant: Global Loan Agency Services Limited (Guarantee Agent); Fifth Defendant: GLAS Trustees Limited; Sixth Defendant: Deutsche Trustee Company Limited; Seventh Defendant: Signal Credit Opportunities (Lux) Investco II S.À. R. L.; Eighth Defendant: Galapagos S. A.
Jurisdiction
England and Wales
Judgment Date
19 January 2021
Procedural Posture
Commercial/financial List / Jurisdiction Challenge and Declaratory Relief Application
Outcome
Jurisdiction upheld; declaratory relief claim proceeds against all defendants.
Legal Topics
Jurisdiction Under Brussels Regulation, Declaratory Relief, Trustee Representation, Intercreditor Agreements, Restructuring Compliance, Abuse of Process
Commercial Law Insolvency Law Banking and Finance Law Conflict of Laws Jurisdiction Under Brussels Regulation Declaratory Relief Trustee Representation Intercreditor Agreements +2 more

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Parties

Galapagos Bidco S.À. R. L.

Claimant

Dr. Frank Kebekus

First Defendant

GLAS Trust Corporation Limited

Second Defendant

Global Loan Agency Services Limited (Revolving Agent)

Third Defendant

Global Loan Agency Services Limited (Guarantee Agent)

Fourth Defendant

GLAS Trustees Limited

Fifth Defendant

Deutsche Trustee Company Limited

Sixth Defendant

Signal Credit Opportunities (Lux) Investco II S.À. R. L.

Seventh Defendant

Galapagos S. A.

Eighth Defendant

Procedural Posture

Commercial/financial List / Jurisdiction Challenge and Declaratory Relief Application

Legal Issues

  1. 1 Whether the English court has jurisdiction over foreign defendants under Article 8(1) and Article 25(1) of Regulation (EU) No 1215/2012 (Recast Brussels Regulation)
  2. 2 Whether there is a sustainable claim against anchor defendants for purposes of Article 8(1)
  3. 3 Whether declaratory relief can be granted where anchor defendants are neutral or non-participating

Ratio Decidendi

The English court has jurisdiction over Signal and Dr Kebekus under Article 8(1) of the Recast Brussels Regulation because there is a real dispute between Bidco and holders of HYN, represented by the HYN Trustee, and declaratory relief is necessary to bind all affected parties. The anchor defendants' neutrality does not preclude a sustainable claim, as the dispute exists with underlying beneficiaries. The requirements for declaratory relief and jurisdiction are satisfied.

Court Disposition

Jurisdiction upheld; declaratory relief claim proceeds against all defendants.

Orders

  • English court has jurisdiction over Signal and Dr Kebekus under Article 8(1) and Article 25(1) of the Recast Brussels Regulation.
  • Claim for declaratory relief proceeds against all defendants.