King & Spalding successfully represented Mangrove Luxco IV S.a.r.l. (“Mangrove”) in a litigation concerning the re-transfer of shares in Galapagos S.A. or alternative claim of compensation (Wertersatz) of EUR 1.05 billion by the insolvency administrator of Galapagos S.A., Dr. Frank Kebekus, against Mangrove and Glas Trust Corporation Ltd.
In its judgment of June 15, 2023, the regional court of Duesseldorf - 8th Civil Chamber – fully dismissed the claims of Dr. Frank Kebekus, acting as insolvency administrator of Galapagos S.A., against Mangrove and Glas Trust Corporation Ltd 's (file no. 8 O 303/20). The alternative claim of compensation of EUR 1.05 billion plus interest at 5 percentage points above the base interest rate was also fully dismissed.
After several years of proceedings and pending lawsuits with different objectives / motions before different courts and in a number of jurisdictions, this victory is another important milestone for Mangrove in one of the most disputed out-of-court restructurings in Europe to date and again confirms the legality of the steps taken in that respect. The ruling follows several decisions by the Court of Justice of the European Union, the German Federal Supreme Court and the regional and higher regional courts of Duesseldorf, as well as proceedings in Luxembourg, the U.S. and the UK.
The main issues at stake were whether an out-of-court restructuring facilitated by an enforcement sale based on an intercreditor agreement under English law complies with German law, and whether German courts have jurisdiction to open insolvency proceedings against a creditor's assets where a COMI transfer has taken place, as well as other complex issues of international insolvency and civil procedure law.
Mangrove is an entity owned by funds advised by international private equity house Triton.
The King & Spalding team acting for Mangrove was led by Frankfurt partner Dr. Peter Memminger and associate Dr. Yvonne Conzelmann.
In a preliminary injunction proceeding, the team had already overturned the seizure of shares originally ordered by the regional court of Duesseldorf by successfully appealing to the higher regional court of Duesseldorf.