Article published on enforcing English judgment debts against companies in financial difficulty

In the absence of a statutory insolvency regime, the English courts have historically adopted a "first past the post" approach to the enforcement of judgments by competing creditors. The general rule is that creditors who act speedily and diligently to obtain judgments and identify assets will be rewarded for their efforts. There are however exceptions where the courts may depart from the general rule, particularly where there is (or is likely to be) a process on foot for the pari passu distribution of the judgment debtor's assets, such as via a scheme of arrangement or company voluntary arrangement.

Natasha Johnson has published an article in International Corporate Rescue which looks at recent cases that have sought to test the boundaries in this area. Click here to download a pdf.