Swissair, Re

Swissair, Re

The court possesses power to order remittal of assets to a foreign liquidation where the foreign law provides for a pari passu distribution, both under its inherent jurisdiction and under Article 21.2 of the Model Law, and the remittal is consistent with the English liquidation and adequately protects local creditors.

Parties
Debtor: SwissAir Schweizerische Luftverkehr-Aktiengesellschaft; Swiss Liquidator: Mr Karl Wüthrich; Liquidators: English Liquidators
Jurisdiction
England and Wales
Judgment Date
06 August 2009
Procedural Posture
Insolvency / Application for Remittal of Assets
Outcome
application granted
Legal Topics
Remittal of Assets, Pari Passu Distribution, Court's Inherent Jurisdiction, Model Law Recognition
Insolvency Cross Border Insolvency Remittal of Assets Pari Passu Distribution Court's Inherent Jurisdiction Model Law Recognition

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Parties

SwissAir Schweizerische Luftverkehr-Aktiengesellschaft

Debtor

Mr Karl Wüthrich

Swiss Liquidator

English Liquidators

Liquidators

Procedural Posture

Insolvency / Application for Remittal of Assets

Legal Issues

  1. 1 Does the court have inherent jurisdiction to direct remittal of assets from an English ancillary liquidation to a foreign principal liquidation where there will be a pari passu distribution?
  2. 2 Is the remittal of assets consistent with the Cross-Border Insolvency Regulations 2006 and the Model Law?

Ratio Decidendi

The court possesses power to order remittal of assets to a foreign liquidation where the foreign law provides for a pari passu distribution, both under its inherent jurisdiction and under Article 21.2 of the Model Law, and the remittal is consistent with the English liquidation and adequately protects local creditors.

Court Disposition

application granted

Orders

  • Assets realised by the English liquidators to be remitted to the Swiss liquidator for distribution in accordance with Swiss law.
  • Remittal is consistent with English liquidation and creditor interests are adequately protected.