Walker International Holdings Ltd v République Populaire du Congo
Abstract
Walker International Holdings Ltd v République Populaire du Congo 6 December 2005 Morison J Commercial Court [2005] EWHC 2813 [2005] ArbLR 65 Arbitration award--Enforcement--Arbitration award against state--Charging orders over shares owned by state oil company--Whether state the ultimate beneficiary (yes)--Whether companies independent commercial entities (no)--Whether companies set up for the purpose of frustrating creditors (yes)--Whether to discharge charging orders (no) Charging orders maintained over shares of companies owned and controlled by state Walker International purchased debt against the Republic of Congo. The claims were referred to arbitration. An arbitral award was issued ordering Congo to pay Walker in excess of FRF100 million. Walker obtained an order from the High Court granting permission to enforce the award. Walker sought to enforce the award against shares in a company, Jackson, which owned property in London. Walker alleged that the shares, which were acquired in the name of Fininco, actually belonged to Congo. Interim charging orders were made over the shares and property. As a result of objections by Fininco and Jackson, the court directed a trial of the issue as to whether the Congo was `interested beneficially' in the shares or the property. Held: Congo was beneficially interested in the