The courts have provided welcome clarity on enforcing foreign judgments in English insolvency proceedings: Lauren Pardoe & Camilla Pratt outline the opportunities & challenges
- Two recent decisions have confirmed that foreign judgments can serve as the basis for bankruptcy or winding-up petitions, even if they are not formally registered or recognised in the courts of England and Wales.
- For creditors, this approach may reduce the time and costs typically associated with enforcing judgments or initiating fresh proceedings.
- It appears that the English courts will not automatically enforce a foreign judgment, particularly where a bona fide dispute on substantial grounds exists.
Following recent High Court decisions, solicitors involved in cross-border insolvency and debt recovery matters will welcome the clarity provided in relation to the treatment of foreign judgments in the context of the current insolvency regime. Recent cases, including Drelle v Servis-Terminal LLC [2024] EWHC 521 (Ch) and Re a Company [2024] EWHC 1070 (Ch) confirm that foreign judgments, incontrovertibly owed, can indeed serve as the basis for bankruptcy or winding-up petitions, even if they
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