The State Oil Company of the Republic of Azerbaijan & Ors v Mubariz Mansimov & Ors

Facts

The claimants are creditors under two arbitration awards made in London-seated arbitrations. The first claimant, the State Oil Company of the Republic of Azerbaijan ("SOCAR"), is the direct or indirect parent of the other claimants. The first defendant, Mr Mansimov, founded the Palmali group of shipping companies; the remaining defendants are companies incorporated in Malta, Turkey and St Kitts and Nevis, and his life partner, Ms Gasimova. SOCAR and Palmali began trading in 2007, and SOCAR and its subsidiaries later made two loans to Palmali International Holding Company Limited, secured in one case by a guarantee from the second defendant. Palmali's finances deteriorated, and in December 2016 the transportation services agreements were terminated by a Termination and Settlement Deed. Restructurings followed in April 2018, June 2018 and February 2020, transferring shareholdings for no or nominal consideration. Three arbitrations were commenced in mid-2018, two seated in London and one in Dubai, producing awards totalling around $240 million which remain substantially unpaid. The claimants brought proceedings alleging a claim under section 423 of the Insolvency Act 1986, the Marex tort, and unlawful means conspiracy, obtaining permission from Jacobs J to serve out of the jurisdiction. The defendants applied to set that order aside.