United Kingdom: Insolvency/Bankruptcy

The Supreme Court has unanimously reversed the Court of Appeal's decision in Drelle v Servis-Terminal LLC, establishing that creditors can rely on unrecognised and unregistrable foreign judgments to found bankruptcy petitions in England and Wales. This landmark ruling clarifies the legal effect of foreign judgments at common law and significantly impacts enforcement strategies for international creditors seeking to recover judgment debts without prior recognition proceedings.

When joint special administrators failed to return client assets for over four and a half years after an investment bank entered special administration, the UK High Court delivered two unprecedented judgments. The court ordered an interim distribution of over £11 million and made a landmark costs ruling that stripped the administrators of any right to recoup their costs from client assets, holding them personally liable instead.

Foreign bankruptcy and insolvency orders are not automatically enforceable in England and Wales. In most cases, recognition is the first step before a foreign officeholder or creditor can seek relief...