Insolvency – Debt Restructuring Moratorium - "lis pendens" (1988 Lugano Convention)

Originally published February 2010

The Swiss Supreme Court forced a creditor to argue simultaneously the same claim at the forum applicable to that claim and at the Swiss forum of a debt-restructuring moratorium. Belgium is now suing Switzerland before the International Court of Justice ("ICJ") for breach of the Lugano Convention on jurisdiction and the enforcement of judgments in civil and commercial matters (the "Lugano Convention").

Facts

In 1995, Swissair (subsequently renamed SAirGroup) and its subsidiary SAirLines acquired some equity in Sabena and entered a partnership with the Belgian State and three state-controlled Belgian companies. Various other contracts were entered into, between 1995 and 2001, among others, to secure the financing and joint management of Sabena, providing for the exclusive jurisdiction of the Brussels courts in the event of dispute and for the application of Belgian law.