The Court of Appeal has reinstated a statutory demand served against property tycoon Glenn Maud by the Libyan Investment Authority (LIA) over a £17.5m debt.
Lord Justice Moore-Bick today overturned an earlier High Court decision setting aside the statutory demand.
He said: “I have reached the conclusion that there are no grounds for setting aside the statutory demand and that the appeal should be allowed.”
Mrs Justice Rose had ruled last year that it would be illegal for Maud to pay the LIA because to do so would be a breach of the sanctions regime imposed on Libya by the United Nations. However, the Court of Appeal today disagreed, allowing the LIA’s appeal.
The proceedings arise out of a guarantee given by Maud in April 2008 in support of a €12.5m loan made by the LIA to Propinvest group. Lord Justice Moore-Bick said that it was common ground that by the time the statutory demand was served in February 2014, Maud had become liable under the guarantee in an amount exceeding £17.5m.
Separately, Maud is involved in a legal tussle with creditors Robert Tchenguiz’s Edgeworth Capital and Abu Dhabi investment fund Aabar. Last month a bankruptcy registrar at the High Court in London gave Maud a stay of execution on a bankruptcy order to allow him the chance to appeal.
Maud v Libyan Investment Authority Court of Appeal (Moore-Bick LJ, Longmore LJ, Macur LJ) 27 July 2016
Jonathan Swift QC and Adam Al-Attar (instructed by Hogan Lovells International LLp) for the appellant
Alan Maclean QC instructed by Paul Hastings (Europe) LLP for the respondent
