His Excellency Sheikh Khalid & Ors v His Excellency Sheikh Hamed Bin Ahmed Al Hamed & Anor
[2024] EWHC 2448 (Comm)
Khaleefa Butti Omair Yousif Almuhairi & Anor, Re
31 January 2024
[2024] EWHC 535 (Ch)
High Court
A UK court approved an Abu Dhabi bankruptcy case, allowing a restructuring plan to proceed. This means the debtors' assets in the UK will be managed under the Abu Dhabi plan, protecting creditors. A previous rejection of a similar application in Dubai was deemed irrelevant due to differences in the legal frameworks.
Key Facts
- •Application for recognition of Abu Dhabi insolvency proceedings under Article 17 of Schedule 1 to the Cross-Border Insolvency Regulations 2006 (CBIR).
- •Applicants: Trustee Committee representing Khaleefa Butti Omair Yousif Almuhairi and His Excellency Saeed Mohamed Butti Khalfan Alqebaisi (the Debtors) and 28 related entities.
- •Insolvency proceedings in Abu Dhabi involve a consolidated bankruptcy and a restructuring plan approved by 88% of creditors.
- •Prior application for recognition was refused by the Dubai International Financial Centre Court.
- •Applicants seek recognition as "foreign main proceedings" under CBIR, a stay on UK proceedings against Debtors' assets, and entrusting/realisation of UK assets to the Trustee Committee.
Legal Principles
Recognition of foreign insolvency proceedings under the CBIR.
Cross-Border Insolvency Regulations 2006
Determination of the Debtor's Centre of Main Interests (COMI).
Cross-Border Insolvency Regulations 2006
Definition of "foreign proceeding" under the CBIR.
Cross-Border Insolvency Regulations 2006
Automatic stay on proceedings against Debtors' assets upon recognition under the CBIR.
Cross-Border Insolvency Regulations 2006
Additional relief to prevent dealings with specific properties upon recognition under the CBIR.
Cross-Border Insolvency Regulations 2006
Outcomes
Recognition of the Abu Dhabi bankruptcy proceedings as "foreign main proceedings" under the CBIR.
The Applicants satisfied the requirements of Article 17 of Schedule 1 to the CBIR, including demonstrating that the Debtors' COMI was in the UAE and that the proceedings met the definition of a "foreign proceeding". The court found the prior rejection in Dubai irrelevant given the different jurisdictional basis and procedural stage.
Granting of additional relief under Article 21 of the CBIR.
To prevent dealings with the Debtors' assets located in London, aligning with the aims of the restructuring plan.
Acceptance of an undertaking from the Applicants regarding potential future legislative changes in UAE bankruptcy law.
To address potential impact of upcoming legislative changes on the recognition order.