Prices of Russian and other sovereign debt are falling as their economies buckle, presenting both opportunities and challenges for investors.
Enforcing the debt against sovereign entities is already difficult, more so when sanctions are involved.
As our Claim Monetization & Dilution team explains, non-traditional strategies may go further in putting maximum pressure on sovereigns and maximizing returns.
Even when they leave their home countries for the United States, many individuals still get targeted by aggressive foreign insolvency proceedings that try to get recognized in U.S. courts.
However, as a recent U.S. Bankruptcy Court decision in favor of a Russian debtor has revealed, there are important steps targets can take to defend themselves.
By gathering evidence to show the corrupt nature of the foreign proceedings and one’s severed ties with the foreign country, targets can beat back these hostile campaigns.
U.S. courts traditionally have been a generous forum for foreign judgment creditors.
A recent ruling from a New York state court has further broken down barriers for recognition of a foreign judgment in the U.S., even when the debtor is subject to a foreign insolvency proceeding.
The New York decision is part of a trend of U.S. courts rejecting "fairness" and "corruption" challenges to Russian courts' judgments. Similar challenges can be overcome with the aid of proper counsel.
