Article
Source: Global Banking & Finance Review
Article
05.16.18
Enforcement of arbitration awards can be an intensive, unpredictable, and hard-fought process. Once a favourable award is obtained, if payment is not made voluntarily, the award creditor will use all legally available means to collect on it. It will likely go to considerable lengths to identify the award debtor’s most ‘lucrative’ assets in various jurisdictions that it can enforce the award against. It will also consider the jurisdictions where the courts will be most likely to grant it the orders sought.
Third parties routinely get caught in the middle of the crossfire between the award debtor and the award creditor. Banks, in particular, whose services are used by the award debtor and suppliers who owe the award debtor money, may find themselves affected. While, logically, one would expect that the value of the award debtor’s assets in the hands of third parties that should be subject to enforcement orders should not exceed the total value of the award debt, this is not always the case, as the recent enforcement proceedings between Moldovan investors Anatoli and Gabriel Stati and their affiliated companies (the “Stati parties”) and the Republic of Kazakhstan (“Kazakhstan”) demonstrate.
Read the remainder of this article on Global Banking & Finance Review.