U.S. Bankruptcy Rulings May be Applicable in Cases in that Affect Residents in the UK
The Court of Appeal recently ruled in the case of a trust created by Eurofinance
that British courts could recognize overseas insolvency proceedings made
by courts in the United States. After the collapse of Lehman Brothers
and the Bernard Madoff scheme, financial analysts say that U.S. bankruptcy
court rulings growing in sync with rulings in the UK may become a reality.
If the move had been made sooner, the Financial Times says that victims
of the Madoff plot in the UK could have been received more money as retribution
for their losses. In the case of Lehman, trustees in the United States
could seek support from the UK courts in enforcing U.S. bankruptcy judgments.
John Verrill of Dundas & Wilson, a law firm involved in the Eurofinance
case, said the removal of the requirement for duplicate actions in either
the United States or the United Kingdom was an important change. Before
this, U.S. bankruptcy judgments were not enforceable in the UK unless
a separate UK action had begun on the same grounds, the Times notes.
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