Re Agrokor D.D.; Sberbank of Russia v Ramljak

Insolvency – Cross-border insolvency. The Companies Court construed an undertaking given by the applicant, Sberbank of Russia, in proceedings, under the Cross-Border Insolvency Regulations 2006, SI 2006/1030, to recognise administration proceedings in Croatia concerning Agrokor DD as the main proceedings. Sberbank argued that the undertaking in a consent order (that, pending the 'final determination' of an application to recognise the Croatian proceedings, it would take no further steps in an LCIA arbitration against Agrokor DD and its subsidiaries), should not have any continuing effect following English court's recognition of the Croatian proceedings. Agrokor DD's administrator contended that the undertaking should continue since there had been no final determination of the recognition application, due to an outstanding application for permission to appeal. The court held that, on its true construction, the undertaking had not yet come to an end because, although the application for recognition had been determined, the phrase 'final determination' in the undertaking referred, either to the end of the possibility of any appeal or, if sooner, to a point at which the losing party at first instance acknowledged that there would be no appeal or no further appeal.

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