ICSID, 21 November 2017, Dan Cake (Portugal) SA v. Hungary, no. ARB/12/9

The Tribunal confirmed the denial of justice leading to the loss of investment operated by a Budapest court.
In 1996 Dan Cake acquired the shares of a Hungarian Danesita in order to develop commercial activities in Eastern European countries.
In 2006, the Metropolitan Court of Budapest, sitting as a bankruptcy court, served Danesita a copy of its creditor’s request for Danesita’s liquidation and ordered it to declare whether
it admitted the contents of the request. Danesita did not respond to the Court’s order. Consequently, at the start of 2007, the Court declared Danesita insolvent and appointed a liquidator. Danesita and Dan Cake tried to enter into an agreement with Danesita’s creditors to avoid the sale of its assets. However, the Metropolitan Court of Budapest declined to convene a composition hearing, ordering Danesita at the same time to make supplementary filings and to proceed with the sale of the assets. Danesita’s request to invalidate the first tender failed and the investment was sold.

2018-01-14T22:50:19+00:00 November 21st, 2017|ICSID, International awards|0 Comments

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