Ronelp Marine Ltd and other companies v STX Offshore & Shipbuilding Co Ltd

Insolvency – Cross-border insolvency. The Chancery Division granted the claimant Liberian companies, which were buyers under shipbuilding contracts, permission to continue an action brought by them against the first defendant Korean shipbuilding company (STX), under a guarantee. STX had entered into a Chinese insolvency process and Korean rehabilitation proceedings concerning STX had been recognised in the English court as the 'foreign main proceeding', under the Cross Border Insolvency Regulations 2006, SI 2006/1030. The court held that granting permission for the continuation of the Commercial Court action would not impede the achievement of the rehabilitation plan.

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