Jonathan Nash QC and Cleon Catsambis successful in Glenn Maud bankruptcy proceedings

On 24 April 2020 and 8 June 2020, Mr Justice Snowden handed down judgments in the “complex and highly unusual bankruptcy proceedings” in (1) Edgeworth Capital and (2) the Libyan Investment Authority v Glenn Maud [2020] EWHC 974 (Ch).

The underlying debt related to the financing and ownership of the ‘Financial City’ office and real estate complex in Madrid, valued at c.£3 billion.

The case involved interesting questions of abuse of process, collateral purpose, the class nature of the bankruptcy (and winding up) jurisdictions and potential detriment to creditors.

After a 5 day hearing, and further argument at a hearing to settle consequential matters, Mr Justice Snowden made a prospective bankruptcy order against Mr Maud (deferred to allow time for an application for permission to appeal) on the petition by the Libyan Investment Authority in order to preserve an earlier ‘look-back’ date.

The judge indicated that, had he not done so, he would have in any event been prepared to make a bankruptcy order on the petition by Edgeworth Capital because, although that petitioner had a collateral purpose in bringing the petition (namely, removing Mr Maud from a position of influence in the Spanish insolvency), there had been no abuse of process.

Jonathan Nash QC and Cleon Catsambis acted for the successful first Petitioner, instricted by John Wilkinson of Farrer & Co.

The full judgment can be found here. The judgment on consequential matters can be found here.