United Kingdom: Insolvency/Bankruptcy/Re-Structuring

Elevate Estates Management Ltd sought to restrain a winding-up petition based on rent arrears exceeding £836,000, arguing that substantial payments had not been credited and advancing a repair-related cross-claim exceeding £330,000. The court rejected both arguments, finding the alleged uncredited payments were unparticularised and the cross-claim lacked contemporaneous documentary evidence, ultimately dismissing the applications and awarding indemnity costs against Elevate.

The High Court has clarified the interaction between mental health crisis moratoriums under the Debt Respite Scheme and secured lending enforcement. When property security covers a company's debt rather than an individual's personal liability, receivers can proceed with sales despite the moratorium. This decision provides crucial guidance for insolvency practitioners and lenders navigating the complex intersection of mental health protections and security enforcement.

The Supreme Court has reversed a Court of Appeal decision in a landmark case involving a Russian judgment worth 2 billion roubles, settling whether creditors can present bankruptcy petitions based on unrecognised foreign judgments. This ruling establishes that foreign judgments create common law obligations constituting debts under the Insolvency Act 1986, though questions remain about when debtors can dispute such debts on public policy or fraud grounds.