M&C represented a Bangladeshi aviation company in a significant cross-border insolvency proceeding involving aircraft financing arrangements and a contractual clause providing for the jurisdiction of the courts of England and Wales.
The High Court Division recently dealt with a significant insolvency proceeding involving a Bangladeshi aviation company and a major international aircraft financing entity.
The matter arose from disputes connected to aircraft leasing arrangements, corporate guarantees provided by affiliated entities, and the enforcement of cross-border commercial obligations. The underlying agreement contained a dispute resolution clause providing for the jurisdiction of the courts of England and Wales. The proceedings therefore raised complex questions concerning insolvency law, the liability of related corporate entities, the jurisdiction of Bangladeshi courts, and the application of conflict of laws principles in an international commercial context.
The High Court held that the contractual submission to the jurisdiction of the courts of England and Wales did not bar the institution or continuation of winding-up proceedings in Bangladesh. Following extensive hearings, the Court appointed a liquidator to oversee the winding-up process, and the parties are presently working within the framework established by the Court to ensure an orderly administration of the liquidation.
The decision is significant for cross-border creditors because it confirms that a foreign jurisdiction clause does not necessarily displace the statutory insolvency jurisdiction of the Bangladeshi courts. The proceedings also highlight the increasingly sophisticated intersection of aviation finance, corporate insolvency, jurisdiction and conflict of laws before the courts of Bangladesh.
Mahbub & Company’s Cross-Border Dispute Resolution Team represented the Bangladeshi aviation company throughout the proceedings, addressing complex questions at the intersection of aircraft finance, corporate guarantees, foreign jurisdiction clauses and Bangladesh’s statutory insolvency regime. The team continues to assist the company in navigating the Court-supervised liquidation framework and protecting its interests through an orderly administration of the process.
The team was led by Saqeb Mahbub, Partner, and Rifat Rahman, Senior Associate.
