Swissair, Re [2009] EWHC 2099 (Ch) (06 August 2009)

Swissair, Re [2009] EWHC 2099 (Ch) (06 August 2009)

The English court retains inherent jurisdiction to order remittal of assets to a foreign liquidator where the foreign liquidation provides for pari passu distribution, and such remittal is also authorised under article 21.2 of the Model Law, as enacted in the Cross-Border Insolvency Regulations 2006, provided the interests of English creditors are adequately protected.

Citation
[2009] EWHC 2099 (Ch)
Parties
Debtor/company in Liquidation: SwissAir Schweizerische Luftverkehr-Aktiengesellschaft; Swiss Liquidator/administrator: Mr Karl Wüthrich
Jurisdiction
England and Wales
Judgment Date
06 August 2009
Procedural Posture
Insolvency/cross Border Liquidation / Application for Directions/remittal of Assets
Outcome
Order granted for remittal of assets to Swiss liquidator.
Legal Topics
Remittal of Assets to Foreign Liquidator, Pari Passu Distribution, Court's Inherent Jurisdiction, Model Law on Cross Border Insolvency, Recognition of Foreign Main Proceedings
Insolvency Cross Border Insolvency Company Law Remittal of Assets to Foreign Liquidator Pari Passu Distribution Court's Inherent Jurisdiction Model Law on Cross Border Insolvency Recognition of Foreign Main Proceedings

Case Brief

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Parties

SwissAir Schweizerische Luftverkehr-Aktiengesellschaft

Debtor/company in Liquidation

Mr Karl Wüthrich

Swiss Liquidator/administrator

Procedural Posture

Insolvency/cross Border Liquidation / Application for Directions/remittal of Assets

Legal Issues

  1. 1 Whether the English court has jurisdiction to order remittal of assets to a foreign liquidator where the foreign liquidation provides for pari passu distribution
  2. 2 Whether the Cross-Border Insolvency Regulations 2006 and Model Law permit such remittal
  3. 3 Whether the interests of English creditors are adequately protected

Ratio Decidendi

The English court retains inherent jurisdiction to order remittal of assets to a foreign liquidator where the foreign liquidation provides for pari passu distribution, and such remittal is also authorised under article 21.2 of the Model Law, as enacted in the Cross-Border Insolvency Regulations 2006, provided the interests of English creditors are adequately protected.

Court Disposition

Order granted for remittal of assets to Swiss liquidator.

Orders

  • English liquidators directed to remit assets, net of expenses and preferential claims, to the Swiss liquidator for distribution in accordance with Swiss law.