Dispute Resolution and Arbitration – Cyprus 01

On behalf of the German bank Commerzbank our firm filed an appeal to the Supreme Court against a first instance judgment discharging a worldwide freezing injunction that had been issued in favour of Commerzbank. The injunction had been issued in support of arbitration proceedings filed by Commerzbank in Frankfurt against, inter alia, a Cyprus company. This Cyprus company had guaranteed the payment obligations of the buyers of the Ukrainan ‘Bank Forum’. Commerzbank was the seller in the said transaction and was alleging that the purchase consideration (exceeding USD 120 million) was due to it. The Supreme Court allowed the appeal and reissued the freezing injunction that had been discharged. It also issued an extensive disclosure of assets order against the Cyprus company. In its judgment the Supreme Court made important observations on the principles relating to the rights of pledgees and more generally on how the first instance judges should exercise their discretion when examining applications for freezing injunctions.