Third-party debt order

FG Hemisphere Associates, LLC v Republic of Congo QBD TLR 27 February

Kensington International Ltd had obtained a third-party debt order in respect of a debt owed by Glencoe Energy UK Ltd to the judgment debtor. After the order had been made final, FG Hemisphere Associates LLC, who were also judgment creditors of the Republic of Congo, sought a pari passu payment of its judgment debt from the fund constituted by the Glencoe debt, after allowing Kensington to recover the costs and expenses it incurred in pursuing the litigation in respect of the Glencoe debt. It contended that where a debtor was insolvent, or might be insolvent, in the UK, in the sense of having insufficient assets to pay his English judgment creditors, all creditors should benefit pari passu from the assets found by one creditor and attached by way of a third-party debt order.