RIVERROCK SECURITIES LTD V INTERNATIONAL BANK OF ST PETERSBURG

[2020] EWHC 2483 (Comm), Queen’s Bench Division, Commercial Court, Mr Justice Foxton, 23 September 2020

Arbitration – Anti-suit injunction – Foreign insolvency – Construction of arbitration clause – Arbitrability – Senior Courts Act 1981, section 37

Between January and July 2018 the defendant, IBSP, entered into a series of contracts with the claimant, RSL, under which RSL sold IBSP credit-linked notes issued by UBS, each with a notional value of US$15 million. The contracts were governed by English law with disputes to be resolved by LCIA arbitration. In October 2018, following a review by the Central Bank of Russia, IBSP was placed into provisional administration and its banking licence was revoked. DIA was appointed as its administrator. In December 2018 UBS served notice on IBSP redeeming the notes by transferring the loans to RSL as IBSP’s “Noteholder Representative”. IBSP was declared insolvent on 24 September 2019 and DIA was appointed as its official receiver in bankruptcy. Bankruptcy proceedings were commenced in St Petersburg in October 2019, in the course of which DIA on behalf of IBSP began an action against RSL to seek invalidation of the contracts on the basis of fraud. IBSP relied on Russian bankruptcy law. RSL was ordered to attend a hearing in July 2020.