Jurisdiction(s):
United Kingdom

CIHL v Protopapas: English court rejects recognition of South Carolina long-arm receivership; allows third-party settlements without contempt, leaving damages claims open

Published on: 10 November 2025

Published by a LexisNexis Restructuring & Insolvency expert

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Article summary

Clash of jurisdictions—The English court confirms its jurisdiction against long-arm receiverships, but provides narrow carve-out for third parties (CIHL v Protopapas & Others) Cape Intermediate Holdings Ltd and another v Protopapas and others [2025] EWHC 2706 (Ch) What was the background?

This matter originates in a third party’s bid to construe and vary an English court order obtained by Cape Intermediate Holdings Ltd (‘CIHL’) against its South Carolina receiver, alongside CIHL’s cross‑application to injunct that third party from striking any settlement with the overseas receiver, who, under the order and English law, lacked authority to act for or bind CIHL. The order followed an earlier judgment in November 2024 (Cape Intermediate Holdings Ltd and Cape Plc v Peter D Protopapas [2024] EWHC 2999 (Ch)), in which Mann J declared that CIHL’s directors—not the foreign appointee—held the authority to represent CIHL. The court confirmed that the receiver, Mr Protopapas, had no power under English law to bind the English company. Against that backdrop, the applications addressed the English court’s position on long‑arm receiverships, while recognising a narrow carve‑out allowing third parties to seek clarification or variation without disturbing the principle that only CIHL’s directors could speak for the company...

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