In London, China Bank Proceeds With Lawsuit Against Cuba For Potential US$1.3 Billion. Another Plaintiff In London Received Legal Fees From Cuba- That Lawsuit Continues In Litigation..
/"FOR IMMEDIATE RELEASE: CRF Makes Significant Progress in Legal Battle with Cuba
LONDON, UK — 28 June 2023 — CRF I Limited**, a significant holder of defaulted Cuban sovereign debt, today announced important progress in its ongoing legal battle with the Republic of Cuba and the Banco Nacional de Cuba (BNC).
1. Justice Cockerill Denies Cuba's Attempt to Appeal**: Justice Cockerill of the English High Court has rejected Cuba's appeal request in the litigation, affirming the court's original decision in favour of CRF I Limited (CRF). This decision is an important step forward for CRF, limiting Cuba's defensive options and significantly enhancing CRF's position in the case.
2. Cuba Faces Legal Action from ICBC**: In an unprecedented move, the Industrial and Commercial Bank of China, through ICBC Standard Bank has initiated legal proceedings against Cuba for approximately EUR1.1bn. This action follows significant pressure from CRF for ICBC to protect its interests as the custodian of CRF's Cuban assets. ICBC's decision to litigate against Cuba is a significant step forward for CRF and adds another dimension to Cuba's mounting legal challenges.
3. Cuba Compensates CRF for Legal Expenses**: In a recent development, the Cuban government has reimbursed CRF for the court ordered legal costs following CRF's initial victory in the UK High Court. This compensation acknowledges the validity of CRF's claims and is a positive indication for CRF and its investors.
CRF remains committed to protecting its interests and those of its investors. Despite the ongoing challenges, CRF continues to advocate for a fair resolution of the debt issue with the Cuban government. But a negotiated outcome requires goodwill on both sides, and so far the Cuban side have declined to negotiate.
About CRF** CRF is an investment entity created specifically to invest in defaulted Cuban sovereign debt. It holds the largest known portfolio of such debt and is asserting its legal rights to recoup these debts in full. Contact Information- David Charters, Director, cuba.recovery@gmail.com
LINK TO MEDIA RELEASE IN PDF FORMAT
22-06-2023- Order by Judge for Permission/refusal to appeal before The Hon. Mrs Justice Cockerill
19-04-2023- Order by Judge Order approved before The Hon. Mrs Justice Cockerill
LINK: Verdict By London Court In Cuba Debt Lawsuit: From Court- Money Remains Owed By Cuba, Cuba Lawfully Changed Assignment Process, Plaintiff Will Seek New Assignment. Another Year In Court? April 04, 2023
Court Judgement Excerpt: “CONCLUSIONS AND SERVICE OUT- 400. In conclusion: i) BNC consented on its own behalf to the assignment by ICBC to CRF of its rights and obligations under the Agreements; ii) It lacked capacity to consent on behalf of Cuba to the assignment by ICBC to CRF of its rights under the Guarantee; iii) Accordingly, the rights and obligations of ICBC under the Agreements were validly assigned to CRF, with the result that CRF is entitled to rely on the contractual provisions contained therein as to the jurisdiction of the English court, waiver of immunity and service of process. 401. I therefore find and declare that: i) BNC, on its own behalf, consented to the assignment of the debts represented by the Agreements by ICBC to CRF; ii) Accordingly, the debts represented by the Agreements have been validly assigned by ICBC to CRF; APPROVED JUDGMENT CRF v Banco 94 iii) The Court has jurisdiction to try the debt claims herein; iv) BNC is not immune from the jurisdiction of the Court pursuant to the SIA; and v) The conditions for the service of the Claim Form out of the jurisdiction upon BNC have been satisfied.”
LINK TO 3-PAGE APPROVED JUDGEMENT (4 April 2023)
LINK TO 94-PAGE APPROVED JUDGEMENT IN PDF FORMAT (4 April 2023)
“London, UK, 4th April 2023
Cuba Defeated in English High Court by CRF
CRF I Limited v. Banco Nacional de Cuba and Republic of Cuba - CL-2020-000092 090
Following a landmark ruling by the English High Court in favour of CRF I Limited, Mr. David Charters, the Chairman of CRF provided a series of quotes for a press release, highlighting the company's commitment to ethical business practices and its intent to work closely with the Cuban government to reach a mutually beneficial solution. Mr. Charters stated, "We are pleased that a Senior Judge in the English High Court has recognised CRF as a responsible creditor, and not a vulture fund, contrary to Cuban assertions. This decision reaffirms our commitment to conducting business in an ethical and responsible manner."
Mr. Charters continued, "We have always maintained that the claims of bribery against CRF I Limited and our colleague Jeet Gordhandas were baseless, and we are pleased that this has been confirmed by a costs order against Cuba. We remain committed to upholding the highest standards of integrity and transparency in our business dealings." In response to a prior recent statement from Cuban Justice Minister Silvera, Mr. Charters welcomed Cuba's recognition of CRF as a legitimate creditor: "We welcome the statement from Minister Silvera that Cuba will recognize our legitimate debts and legitimate creditors, as CRF is both. We look forward to working with the Cuban government to find a mutually beneficial solution."
Emphasising CRF's commitment to supporting the Cuban economy, Mr. Charters added, "CRF remains committed to finding a solution with Cuba that has zero impact on its budget for at least 5 years, recognising the difficult economic situation the country is facing. We believe that a mutually beneficial solution can be reached through constructive dialogue and cooperation." Addressing a technical point in the judgement, Mr. Charters concluded, "BNC was the Central Bank of Cuba and remains responsible for managing these unpaid Cuban debts. Cuba won a technical point in this judgement which we have already remedied and we do not expect this issue to impact the eventual final outcome, which is a complete victory for CRF."”
"Further to our press release earlier this morning, please see below a further release by Rosenblatt: The Rosenblatt team - Harvey Rands, George Jackson, Madeleine Binkley and Tracy Tsao - is pleased to have obtained a landmark judgment establishing jurisdiction against Banco Nacional de Cuba in respect of Cuban sovereign debt held by their client CRF I Limited. In judgment handed down yesterday, the Commercial Court held that CRF are a legitimate creditor of Cuban sovereign debt payable by Banco Nacional de Cuba, the former Cuban central bank, having agreed to an assignment of two debt positions from ICBC Standard Bank to CRF. The court rejected Cuba’s contrived allegations both of bribery, and that CRF is a vulture fund. Cuba’s allegation of bribery was cynically maintained without foundation for two years before being dropped shortly before trial. CRF may now proceed to a substantive trial to enforce recovery of the sovereign debt that it unequivocally owns. In the meantime, Banco Nacional de Cuba has been ordered to make a payment of £575,000 to CRF on account of costs. The Republic of Cuba relied on Cuban law to establish that the Banco Nacional de Cuba could not consent to an assignment of Cuban sovereign debt on its behalf. Accordingly, CRF have now made an express request directly to the Republic of Cuba for consent to assign the underlying guarantees, which they have no ground to refuse in accordance with the judgment handed down.
Other Release Notes: It's important to note that CRF has already re-filed and Cuba must accept the assignment or risk being deemed unreasonably withholding. Cuba has bought themselves 28 days. CRF appears to be the clear winner in this situation, as it has a draft order for costs. This suggests that CRF has a strong case and is likely to come out on top. Another important point to consider is that CRF is a bona fide creditor. This means that they have a legitimate claim to the funds in question, which strengthens their position in any legal proceedings. Finally, it's worth noting that all creditors know exactly how to put Cuba in the crosshairs. This suggests that Cuba may face additional legal challenges in the future if they continue to withhold funds from CRF or other creditors. Ultimately, it's in Cuba's best interest to resolve this situation as quickly and fairly as possible."
Granma
Havana, Republic of Cuba
4 April 2023
República de Cuba gana pleito en Londres: CRF no es acreedor del Estado cubano
La sentencia acoge el planteamiento sostenido por la parte cubana durante el proceso y desestima la reclamación de CRF contra el Estado cubano
En audiencia desarrollada este martes 4 de abril (08.45 horas de Londres) en la Alta Corte de Inglaterra y Gales, la jueza Sara Cockerill notificó a los abogados de las partes la sentencia correspondiente a la demanda interpuesta por el fondo buitre CRF I Limited contra la República de Cuba y el Banco Nacional de Cuba (BNC). La sentencia acoge el planteamiento sostenido por la parte cubana durante el proceso y desestima la reclamación de CRF contra el Estado cubano. La resolución judicial confirma que las irregularidades cometidas por funcionarios del BNC, sujetas a investigación penal primero y a sentencia judicial después, fueron motivos razonables para que el gobierno cubano negara su consentimiento en ceder la deuda a favor de CRF. El documento afirma, tal como venía alegando la República de Cuba, que el BNC no cuenta con capacidad legal ni autoridad para representar al país. Ello ratifica que CRF es un extraño en los instrumentos financieros que reclamaba contra Cuba y no le asistía el derecho a establecer la demanda en Londres; la República de Cuba es, por tanto, inmune a la jurisdicción inglesa y no tiene obligación alguna de responder con su patrimonio ante esta demanda. Como se ha explicado anteriormente, el objeto central del proceso judicial fue determinar si el tribunal inglés era competente para conocer la reclamación de CRF como acreedor del BNC y de la República de Cuba. De acuerdo con la sentencia notificada esta mañana, CRF no es acreedor del Estado cubano, lo que significa que la República de Cuba queda fuera del pleito. En lo adelante el proceso continuará solamente contra el Banco Nacional de Cuba, quien tendrá derecho a establecer las reclamaciones que le permite la ley inglesa.
Google Translate: “In a hearing held this Tuesday, April 4 (08:45 London time) at the High Court of England and Wales, Judge Sara Cockerill notified the lawyers for the parties of the judgment corresponding to the lawsuit filed by the vulture fund CRF I Limited against the Republic of Cuba and the National Bank of Cuba (BNC). The ruling accepts the approach sustained by the Cuban party during the process and dismisses the CRF claim against the Cuban State. The judicial resolution confirms that the irregularities committed by BNC officials, first subject to criminal investigation and later to a judicial sentence, were reasonable grounds for the Cuban government to deny its consent to assign the debt in favor of CRF. The document affirms, as the Republic of Cuba had been claiming, that the BNC does not have the legal capacity or authority to represent the country. This confirms that CRF is a stranger in the financial instruments that it claimed against Cuba and did not have the right to establish the claim in London; the Republic of Cuba is, therefore, immune to English jurisdiction and has no obligation to respond with its assets to this claim. As previously explained, the central purpose of the judicial process was to determine whether the English court was competent to hear the claim of CRF as a creditor of the BNC and of the Republic of Cuba. According to the sentence notified this morning, CRF is not a creditor of the Cuban State, which means that the Republic of Cuba is out of the lawsuit. From now on, the process will continue only against Banco Nacional de Cuba, who will have the right to establish the claims allowed by English law.”
LINK TO 94-PAGE APPROVED JUDGEMENT IN PDF FORMAT (4 April 2023)
On Monday, 23 January 2023, at 10:00 am in London, United Kingdom, an eight-day Jurisdiction Trial commenced with pre-reading for two days, 18 January 2023 and 19 January 2023. The trial was held at the High Court of Justice, City Court House, Rolls Building, 7 Rolls Buildings, Fetter Ln, London EC4A 1NL. Presiding: Mrs. Justice Sara Cockerill.
CRF I Limited (Cayman Islands), V. Banco Nacional de Cuba, The Republic of Cuba. High Court of Justice, Business And Property Courts Of England And Wales, Queen’s Bench Division, Commercial Court [Part 7 Claim- General Commercial Contracts], Royal Courts of Justice. [CL-2020-000092 Filed 18 February 2020; Court Filing Fee £10,000.00 (approximately US$13,000.00].
From Court Filing: “CRF is a company incorporated under the laws of the Cayman Islands. It was established to invest in defaulted Cuban sovereign debt. CRF gradually acquired a portfolio of Cuban sovereign debt which was valued in the total principal sum of EUR189 million by 31 March 2016, and EUR1,200 million by 26 November 2017. The majority of that portfolio, and the part that is relevant to these proceedings, was settled by way of risk participation at ICBC. That is a common arrangement in the sovereign debt market.”
Rosenblatt (plaintiff)
Memery Crystal (plaintiff- firm merged with Rosenblatt)
7 King’s Bench Walk (plaintiff)
Gibson, Dunn & Crutcher UK LLP (previously for plaintiff)
PCB Byrne LLP (defendant)
Essex Court Chambers (defendant)
Uria Menendez (defendant)
Links To Related Analyses
Four Convicted Cubans Are Defense Witnesses In London Bank Trial; One From Prison. Actual Bribery No Longer Defense Strategy; Allegation Of Bribery Remains. Skeletons Tell All? January 18, 2023
China-Owned Bank In London Sues Cuba Central Bank And Government Of Cuba. Either Sue For Custodian Account Holders Or Be Sued By Them? Embarrassing For Cuba To Be Sued By "Good Friend." December 21, 2021
NOTE: On 28 May 2021, London, United Kingdom-based ICBC Standard Bank Plc filed a lawsuit against Banco Nacional de Cuba and the Government of the Republic of Cuba. The lawsuit (CL-2021-000343) was filed in the High Court of Justice, Commercial Court, Part 7 Claim, Central Commercial Contracts and Arrangements. ICBC Standard Bank Plc is represented by London, United Kingdom-based Herbert Smith Freehills LLP. The defendants have no counsel listed. The last update to the lawsuit was 22 November 2021. The claim document has been completed, but has not been served. No documents have been filed- and no documents could be filed for months. LINK Total amount of claim by ICBC Standard Bank Plc against Banco National de Cuba and Government of the Republic of Cuba is approximately 200 Million Euros (approximately US$224.8 million). Total amount of interest is approximately 1 Billion Euros (approximately US$1.12 billion).
Gibson Dunn & Crutcher (London) Represented Plaintiff In US$100 Million Lawsuit Against Cuba. Firm Represents Plaintiff In Libertad Act Lawsuits In Florida, New Jersey, Texas. China A Defendant. December 07, 2021
UK Lawsuit Seeks US$100+ Million From Central Bank Of Cuba & Government Of Cuba. Four Countries. Three Banks. Questions- Defining A "Loan" And Capacity To Contract. Read The 14 Court Filings. December 06, 2021
