Courts / Dublin / Report

Russian leasing giant claims it won't get a fair hearing in Irish courts

Date
2023-12-05

Stage
Hearing Or Decision

Primary locality
Dublin

County
Dublin

Summary

The parent company of Russian State-owned GTLK has indicated it may not participate in legal proceedings initiated by liquidators appointed over its Dublin-registered subsidiary, citing concerns about receiving a fair hearing in Irish courts. Damien Murran and Julian Moroney, joint liquidators of GTLK Europe DAC and GTLK Europe Capital DAC, have filed an action to prevent the Joint Stock Company State Transport Leasing Company from claiming ownership of multiple aircraft. The liquidators argue that the aircraft belong to the firms in liquidation and that the parent company has no legal entitlement to the assets. Counsel for the liquidators, James Doherty SC, stated that Russian lawyers representing the parent company have informed them of their decision not to participate in the Irish proceedings. The liquidators dispute the claim that they would not receive a fair hearing, noting that Russian companies have previously participated in UK court actions. Mr Justice Mark Sanfey acknowledged the urgency of the matter and set a hearing for later this month, leaving the option open for the parent company to participate. The liquidators seek orders to set aside the pledge agreements, declaring them void and unenforceable under Irish law, and asserting their retention of title to the aircraft. The proceedings involve several GTLK group subsidiaries, with the pledge agreements governed by Russian law, though the liquidators and notice parties are based in Ireland. The firms were wound up earlier this year following an application by four creditors who claimed they were owed over US$178m/€162.5m. The financial difficulties of the firms are attributed to economic sanctions imposed on Russian entities following Russia's invasion of Ukraine. GTLK is Russia's largest leasing business in the transport sector, with its Europe Group's international leasing business headquartered in Dublin.