In a recent decision that asserts its power to compel persons and documents from outside its jurisdiction, the Abu Dhabi General Markets (ADGM) court has clearly signalled its intention to serve as a global centre for cross-border insolvencies. In doing so, the ADGM is following the prevailing modern approach to international insolvency law, and has deliberately diverged from the approach of the Courts of England and Wales, which on this point are hidebound by historic considerations.
Through a detailed and wide-ranging judgment in Re NMC Healthcare Ltd & ors  ADGMCFI 0022, the ADGM court confirmed that its jurisdiction under section 256 of the ADGM Insolvency Regulations 2022 – which is the approximate equivalent to s 236 of the UK Insolvency Act 1986 – is not territorially limited and allows the court to make orders for the production of documents and for the examination of persons who are outside its territorial jurisdiction, both in the wider United Arab Emirates and likely beyond.
To further illustrate the underlying trend, the bulletin also incorporates the findings and rationale in the recently released BVI judgment of Justice Small Davis in Re Three Arrows Capital Ltd BVIHC (COM) 2022/0119.
Read the full briefing, authored by Tony Beswetherick KC and Matthew McGhee.