Insights

• Delaware’s strong asset protection laws have long made the U.S. state a destination of choice for individuals and entities worldwide looking to set up a trust.
• International creditors looking to recover assets may feel that pursuing a debtor in Delaware is insurmountable.
• However, it is indeed possible to crack Delaware’s notoriously tough trusts by adopting an aggressive multijurisdictional strategy.

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• Many Brazilian and Latin American companies that borrow in US dollars are facing a growing mountain of debt.
• As international creditors eye a shrinking pool of capital available for repayment, US dollar noteholders may be left at the back of the line relative to onshore creditors.
• However, there are a number of options at USD noteholders' disposal that could improve their position and increases their chances of recovery.

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• International investors and other claimants have long struggled to enforce cross-border claims in the United Arab Emirates (UAE) and the wider Middle East.
• Debtors frequently deploy tactics such as fraudulent conveyance to transfer their assets out of reach.
• A recent precedent-setting decision in Dubai’s High Court, secured by Kobre & Kim and local co-counsel, shows another avenue for global creditors to battle recalcitrant debtors and increase their chances of a swift and significant recovery on their cross-border claims.

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• Several features make Delaware’s trust law attractive for debtors to hold assets in the jurisdiction.
• This also means creditors often struggle when attempting to access the trusts to recover assets.
• By deploying aggressive, multijurisdictional strategies, creditors may be able to crack even Delaware’s notoriously tough trusts.

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• International creditors are seeing more opportunities in the United Arab Emirates and wider Middle East as courts continue to signal openness to recognizing and enforcing overseas judgments.
• This includes overcoming a fraudulent conveyance, as a UAE court recently decided in what may be an unprecedented judgment in favor of a judgment holder represented by Kobre & Kim.
• The judgment demonstrates that there are a rapidly growing number of creditor tools available in the region to combat recalcitrant debtors.

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• Speed is critical for targets of large-scale cryptocurrency fraud or cyber-attacks.
• The borderless and pseudonymous nature of cryptocurrencies means stolen assets can be quickly dispersed around the world.
• Targets should deploy a speedy, global response, combined with non-traditional approaches, to increase the chances of a substantial recovery.

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• Debtor-friendly Delaware has strong asset protection laws that make it a destination of choice for global entities and individuals looking to hold their assets in a trust.
• This creates a headache for international creditors – recovering assets in a Delaware trust can seem like an insurmountable challenge.
• By adopting a creative, aggressive and multijurisdictional strategy, however, creditors can crack even Delaware’s notoriously tough trusts.

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• Korean banks are holding an increasing amount of non-performing loans, putting their financial health at risk.
• For many with large portfolios exposed to cross-border unsecured debt and loans to high-yield borrowers, sale and write downs may not be optimal.
• A cross-border strategy to monetize their claims could offer a superior alternative.

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• The Middle East is opening up to cross-border investors, creditors and claimants, as Saudi Arabia’s adoption of rules based on the UNCITRAL Model Law on Cross-Border Insolvency demonstrates.
• The openness is not limited to that country – the United Arab Emirates has also made strides that gives more tools for creditors considering a global enforcement campaign.
• We explain what these developments mean for creditors.

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• As a key economic center in the region, the United Arab Emirates (UAE) is increasingly the place where many international creditors go as they pursue their debtor’s assets.
• However, some recalcitrant debtors may try to transfer their assets away to avoid payment in a fraudulent transfer.
• Our team explores what strategies are available in the UAE to restore a creditor’s interests.

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• Debtor-friendly Delaware has strong asset protection laws that make it a destination of choice for global entities and individuals looking to hold their assets in a trust.
• This creates a headache for international creditors – recovering assets in a Delaware trust can seem like an insurmountable challenge.
• By adopting a creative, aggressive and multijurisdictional strategy, however, creditors can crack even Delaware’s notoriously tough trusts.

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• Victims of large-scale and sophisticated fraud in Brazil may struggle to recover their assets by only using tools available in the domestic legal system.
• However, a growing interest in fighting cross-border crime by U.S. authorities, together with the power of tools in the U.S., provide victims with a potentially better path to success.
• Our cross-border team explains what strategies victims can deploy to achieve results.

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• When crypto and blockchain companies, funds or exchanges find themselves the target of a sophisticated, large-scale fraud or cyber attack, speed through global reach is key.
• Companies often make impulsive decisions that imperil their recovery chances and business interests.
• The pseudonymous and borderless nature of cryptocurrency means companies need to take a cross-border and nontraditional approach to maximize success.

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• The U.S. Corporate Transparency Act (CTA), part of the recently-passed National Defense Authorization Act (NDAA), has broken new ground by requiring beneficial owners of U.S. corporate entities to register with U.S. government authorities.
• While the CTA appears to shut out private parties – such as creditors and victims of fraud – from accessing such information, there may be potential creative ways to work around this roadblock, bringing creditors one step closer to a substantial recovery of their assets.
• Nevertheless, creative creditors and their counsel might be able to obtain this information through certain channels to cut off escape routes for debtors and fraudsters, and obtain more complete recoveries.

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• Prevailing case law in BVI and Cayman has historically not allowed injunctions to be granted by the offshore courts unless there is an existing claim against the defendant within the jurisdiction of the Court granting the injunction.
• Fortunately, that position has changed in the Cayman Islands and now in BVI, with claimants, including those from onshore jurisdictions such as Hong Kong and the People’s Republic of China, able to obtain “free-standing” injunctive relief in both offshore jurisdictions.
• With the advent of the new law in BVI, and the continuing willingness of the Cayman Islands’ Courts to make protective orders, victims of fraud are now in a better position than they have ever been to guard against a defendant’s dissipation of its offshore assets whilst they are waiting for a judgment.

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