Judgment Hand Down: Re Sova Capital

At the start of the Special Administration, the Joint Special Administrators (David Soden, Stephen Browne and Ian Wormleighton of Teneo) (“the JSAs”) held client money of approximately $250 million, and client assets of approximately US$1.85 billion.

Miles J approved the JSAs’ application for a “hard bar date” in respect of further claims for the return of client money, the first application of its kind under the Investment Bank Special Administration Regulations 2011. The granting of a hard bar date will finalise the client money estate and potentially allow for the return of a further US$25 million to eligible claimants.

On the JSAs’ further application for the approval of a claims adjudication procedure in relation to disputed client money and client asset entitlements, Miles J granted the order, concluding that the procedure would be helpful to crystallise a process to determine a US$284 million claim submitted by the Russian bank, ProbusinessBank, as well as a further 18 potential claimants against the client money and client asset pool.

The ruling follows Miles J’s approval of the first ever unsecured credit bid in March 2023 – see Re Sova Capital Limited [2023] EWHC 452.

The JSAs were represented by William Willson, of South Square.

A copy of the judgment will be posted once approved by the judge.