We are pleased to announce that Economou & Co LLC has successfully represented a leading company in obtaining a liquidation order against its debtor, involving a debt in excess of EUR 16 million.

The debt that formed the basis of the liquidation petition was based on an arbitral award issued by the London Court of International Arbitration (LCIA).

According with the relevant case law of the Supreme Court of Cyprus, as established in INTERPARTEMENTAL CONCERN OAO URALMETROM v. BESUNO (2014) 1 AAD 427 and more recently reaffirmed in ONEMIX GROUP MANAGEMENT LTD v. ROSTEX ENTERPRISES LTD (Civil Appeal 116/2015, 31/01/2024), a foreign arbitral award or judgment that has not been recognised in Cyprus cannot serve as the basis for filing a liquidation petition.

This above principle was recently confirmed by the English Court of Appeal in SERVIS TERMINAL LLC v. DRELLE (2025) EWCA Civ 62, where it was held that a foreign judgment which has not been recognised and enforced in England cannot be used as the basis for any bankruptcy or winding-up petition, even where the debt is liquidated and undisputed.

Accordingly, prior to initiating the liquidation proceedings, the LCIA arbitral award was recognised in Cyprus as if it were a domestic court judgment.

Implications of the Liquidation Order

This case demonstrates the importance of first securing the recognition and enforcement of foreign arbitral awards before initiating liquidation proceedings in Cyprus.

This outcome reinforces Cyprus’s status as a reliable jurisdiction for international enforcement and underlines Economou & Co LLC’s expertise in cross-border insolvency and enforcement proceedings.

Why Choose Economou & Co LLC?

At Economou & Co LLC, we combine strategic insight with legal precision to deliver high-impact results for our clients. With a strong track record in insolvency, arbitration, and cross-border enforcement, our firm is ideally positioned to guide clients through complex financial disputes.