Stanford International Bank Ltd & Ors, Re

Stanford International Bank Ltd & Ors, Re

The US receivership is not a 'foreign proceeding' under the Cross Border Insolvency Regulations 2006 because it is not a collective proceeding, is not pursuant to a law relating to insolvency, and is not for the purpose of reorganisation or liquidation. The Antiguan liquidation is a foreign main proceeding as SIB's COMI is in Antigua, the presumption of the registered office is not rebutted, and the liquidation is pursuant to a law relating to insolvency. The Liquidators are entitled to recognition as foreign representatives of a foreign main proceeding. The Liquidators should control SIB's assets in the jurisdiction and may remit them to Antigua. The common law of recognition survives...

Parties
Debtor: Stanford International Bank Limited; Debtor: Stanford Group Company; Debtor: Stanford Capital Management LLC; Individual Defendant: Robert Allen Stanford; Individual Defendant: James M. Davis; Individual Defendant: Laura Pendergest-Holt; Corporate Defendant: Stanford Financial Group; Corporate Defendant: Stanford Financial Group Building Inc (In Receivership); Liquidators/applicants: Liquidators of SIB (Mr Hamilton-Smith and Mr Wastell); Receiver/applicant: Receiver (Mr Ralph Janvey)
Jurisdiction
England and Wales
Judgment Date
03 July 2009
Procedural Posture
Cross Border Insolvency Recognition / Judgment on Applications for Recognition Under the Cross Border Insolvency Regulations 2006
Outcome
The Antiguan Liquidators are recognised as foreign representatives of a foreign main proceeding; the US Receiver is not recognised under the Regulations in respect of SIB; the Liquidators are to control SIB's assets in the jurisdiction; the Receiver may be recognised at common law in respect of other Stanford...
Legal Topics
Recognition of Foreign Insolvency Proceedings, Centre of Main Interests (comi), UNCITRAL Model Law, Liquidation, Receivership
Insolvency Cross Border Insolvency Company Law Recognition of Foreign Insolvency Proceedings Centre of Main Interests (comi) UNCITRAL Model Law Liquidation Receivership

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Parties

Stanford International Bank Limited

Debtor

Stanford Group Company

Debtor

Stanford Capital Management LLC

Debtor

Robert Allen Stanford

Individual Defendant

James M. Davis

Individual Defendant

Laura Pendergest-Holt

Individual Defendant

Stanford Financial Group

Corporate Defendant

Stanford Financial Group Building Inc (In Receivership)

Corporate Defendant

Liquidators of SIB (Mr Hamilton-Smith and Mr Wastell)

Liquidators/applicants

Receiver (Mr Ralph Janvey)

Receiver/applicant

Procedural Posture

Cross Border Insolvency Recognition / Judgment on Applications for Recognition Under the Cross Border Insolvency Regulations 2006

Legal Issues

  1. 1 Whether the US receivership is a 'foreign proceeding' under the Cross Border Insolvency Regulations 2006
  2. 2 Whether the Antiguan liquidation is a 'foreign proceeding' under the Regulations
  3. 3 Whether the Antiguan liquidation is a 'main proceeding' or 'non-main proceeding'

Ratio Decidendi

The US receivership is not a 'foreign proceeding' under the Cross Border Insolvency Regulations 2006 because it is not a collective proceeding, is not pursuant to a law relating to insolvency, and is not for the purpose of reorganisation or liquidation. The Antiguan liquidation is a foreign main proceeding as SIB's COMI is in Antigua, the presumption of the registered office is not rebutted, and the liquidation is pursuant to a law relating to insolvency. The Liquidators are entitled to recognition as foreign representatives of a foreign main proceeding. The Liquidators should control SIB's assets in the jurisdiction and may remit them to Antigua. The common law of recognition survives...

Court Disposition

The Antiguan Liquidators are recognised as foreign representatives of a foreign main proceeding; the US Receiver is not recognised under the Regulations in respect of SIB; the Liquidators are to control SIB's assets in the jurisdiction; the Receiver may be recognised at common law in respect of other Stanford...

Orders

  • Recognition of Antiguan Liquidators as foreign representatives of a foreign main proceeding under the Cross Border Insolvency Regulations 2006
  • Liquidators to take possession of SIB's assets within the jurisdiction and permitted to remit them to Antigua