Opposing a bankruptcy order based on a foreign judgment subject to a genuine and substantial dispute (Re Drelle)

Article summary

Restructuring & Insolvency analysis: The Insolvency and Companies Court considered the impartiality of the Russian judiciary's judgment debt when deciding whether to make a bankruptcy order. It was accepted by all parties that the court had the ability to look behind judgment debts (McCourt and Siequien v Baron Meats Ltd and the Official Receiver). The court's role was accordingly to determine whether the complaints raised by the respondent gave rise to a bona fide dispute on substantial grounds that the Russian judgments may be impeached. Insolvency and Companies Court (ICC) Judge Burton applied a multi-stage test founded primarily on the test applied in Maximov v Open Joint Stock Company Novolipetsky Metallurgichesky Kombinat. It was held that the petition debt was not subject to a genuine and substantial dispute and the bankruptcy petition could proceed. The case provides useful guidance through ICC Judge Burton's consideration of the Maximov test and through a thorough...