Chinese investors are playing an increasingly significant role in sovereign-related investments worldwide, especially in Europe, Africa, and Latin America.
This raises enforcement challenges linked to sovereign immunity.
Investors and claimants facing sovereign debtors should adopt bold, non-traditional strategies beyond litigation to effectively protect their interests and navigate these complexities.
Delaware’s Domestic Asset Protection Trusts (DAPTs) have earned the state a reputation as a premier jurisdiction for shielding assets from creditors.
These trusts attract individuals and entities around the world seeking strong legal protections.
While international creditors may view asset recovery efforts in Delaware as daunting, it is possible to overcome these protections with a strategic, multijurisdictional approach.
As private debt continues to grow rapidly as a global asset class, investors and asset managers must remain vigilant to the increasing risks that accompany this expansion.
With deal complexity on the rise, these risks are particularly acute in cross-border, high-value credit arrangements.
A coordinated multi-jurisdictional strategy enables creditors to secure more substantial leverage in pursuit of favorable recoveries in response to defaults.
Debtors worldwide often attempt to shield their assets from collection by transferring them to Florida homesteads due to the broad and immediate protection against enforcement afforded by Florida’s constitution to homeowners.
A recent ruling by the United States District Court for the Southern District of Florida in favor of a Kobre & Kim client marks an important step in addressing potential abuses of this protection.
As possibly the first ruling to acknowledge that creditors may be able to collect against Florida homesteads purchased with proceeds from frauds not committed against them, it sets a precedent that could enhance creditors’ ability to enforce claims against debtors attempting to shield assets through homestead protections.
International investors and other claimants have long struggled to enforce cross-border claims in the United Arab Emirates (UAE) and the wider Middle East.
A 2024 precedent-setting decision in Dubai's High Court, secured by Kobre & Kim and local co-counsel, shows another avenue for global creditors to battle recalcitrant debtors and increase their chances of a swift and significant recovery on their cross-border claims.
