The Isle of Man recently played its part in concluding a long running case in respect of an insolvent group of companies. In doing so the Manx Court (in the guise of the Privy Council) has rendered a landmark decision in the field of cross border insolvency.

In the recent case of Lombard Manx Limited v The Spirit of Montpelier Limited (CHP 2014/23), the principal question for the Isle of Man High Court (His Honour Deemster Doyle, the Island's Chief Justice) was whether the Court had jurisdiction at common law to rescind a winding-up order.

The recent decision of Rubin v Euro Finance SA & Others [2012] UK SC 46 has been welcomed in England and Wales as clarifying the English common law applying to the recognition and enforcement of foreign judgments made in relation to foreign insolvency proceedings.

The present economic pressures resulting from the restrictions imposed during the Covid-19 crisis are proving extremely difficult for businesses across a wide range of industries.

Although not on appeal from an Isle of Man court, the Supreme Court in these two cases dealt with principles very relevant to Manx lawyers.

Most jurisdictions have by now felt the effects of the credit crunch to a certain degree and are having to make adjustments to protect themselves and their businesses from its effects.

This article considers the tension between the Privy Council decision in Cambridge Gas and the Supreme Court decision in Rubin.

In 2004, the Isle of Man court in Re Impex[1]decided that the court had a common law power to co-operate with and assist other courts in relation to insolvency matters.

The difference of approach between the Privy Council and the Supreme Court may stem from the impoverished statutory framework for cross border co-operation in corporate insolvencies in certain jurisdictions, including the Isle of Man