International Receivership & Asset Recovery
In this complex international asset recovery case, The McManigle
Company was engaged, qualified and appointed Receiver by Courts in Texas, the
British Virgin Islands (the "BVI") and the Turks and Caicos Islands ("TCI"). Originally, Banco Mexicano, S.A.
("Banco Mexicano") sued World Manufacturing, Ltd. eight affiliated
companies and their principals to recover more than $4 million in fraudulently
obtained export loans. In June 1995,
the Texas court entered separate $22 million default judgments against World
and Manufacturera Del Bravo, Ltd. (“Bravo”).
In July 1995, Banco Mexicano sought appointment of a Receiver and we
were appointed as of July 31, 1995.
Thereafter, Banco Mexicano filed a similar application in the British
Virgin Islands. Based, upon the Texas
court's judgments of fraud and conspiracy to commit fraud, an order was
registered by the BVI Court appointing us Interim Receiver in that
jurisdiction. With entry of these
orders, the assets and business interests of World and Bravo were placed under
our worldwide authority.
Utilizing
this international authority, we conducted a worldwide investigation, which
spanned eight countries. The McManigle
conducted successful fraudulent transfer litigation in the Cayman Islands and
successfully initiated two separate receiverships in the Turks and Caicos
Islands, which resulted in two separate $4 million final judgments. We also conducted extensive collection
litigation in Switzerland that recognized the Turks judgments and allowed the
recovery of cash and assets of approximately $750,000. We were also successful in initiating and
mediating a dispute with a major New York brokerage house, which yielded the
estate a $650,000 cash settlement.
This
multi-national, multi-jurisdictional appointment required us to review and
analyze numerous multiparty contracts, offshore trust agreements, international
banking transactions, and Mexican export loan policies. As the case progressed, we successfully
exerted the Receiver's international investigatory powers and penetrated
confidentiality laws in several offshore corporate havens. Through our direct, cost-effective efforts,
a final worldwide settlement was accomplished that recovered an aggregate
amount from all sources, which yielded a significant net recovery to the
judgment creditor after full payment of all administrative costs.
Jurisdictional
Issues in International Receiverships
Drew McManigle -
ABI “Cracking the Code”
Bankruptcy Engagements | Crisis Management | Directorships | Interim Management