Magyar Telecom B.V.Magyar Telecom B.V., Re

Magyar Telecom B.V.Magyar Telecom B.V., Re

The court sanctioned the scheme because the company had established a sufficient connection with England by moving its COMI, the scheme had overwhelming creditor support, expert evidence indicated likely recognition in the US, Netherlands, and Hungary, and the scheme would have substantial effect and achieve its purpose.

Parties
Applicant: Magyar Telecom B. V.
Jurisdiction
England and Wales
Judgment Date
03 December 2013
Procedural Posture
Scheme of Arrangement / Sanction Hearing
Outcome
Scheme sanctioned
Legal Topics
Scheme of Arrangement, Jurisdiction, Recognition of Foreign Insolvency Proceedings, Creditor Rights, COMI (centre of Main Interests), Enforcement of Judgments
Company Law Cross Border Insolvency Scheme of Arrangement Jurisdiction Recognition of Foreign Insolvency Proceedings Creditor Rights COMI (centre of Main Interests) Enforcement of Judgments

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Parties

Magyar Telecom B. V.

Applicant

Procedural Posture

Scheme of Arrangement / Sanction Hearing

Legal Issues

  1. 1 Whether the English court has jurisdiction to sanction a scheme of arrangement for a foreign company with notes governed by New York law
  2. 2 Whether there is a sufficient connection with England to justify the exercise of jurisdiction
  3. 3 Whether the scheme will have substantial effect and be recognised in relevant jurisdictions

Ratio Decidendi

The court sanctioned the scheme because the company had established a sufficient connection with England by moving its COMI, the scheme had overwhelming creditor support, expert evidence indicated likely recognition in the US, Netherlands, and Hungary, and the scheme would have substantial effect and achieve its purpose.

Court Disposition

Scheme sanctioned

Orders

  • The scheme of arrangement is sanctioned as proposed by Magyar Telecom B. V.