Reed Smith, Clydes win roles on landmark DIFC insolvency

Reed Smith Richards Butler and Clyde & Co have advised on the first liquidation to take place out of the Dubai International Financial Centre (DIFC).

Reed Smith's Dubai arm advised Forsyth Partners on the process after the asset management group went into administration earlier this month. The firm was brought in by Eversheds, which is advising UK administrators Grant Thornton.

Reed Smith advised Forsyth Partners Group Holdings, a subsidiary of the main group, led by office managing partner Sean Angle and assisted by associates Tim Watkins and Daniel Wood.

Clyde & Co, which has an existing relationship with Forsyth Partners in Dubai, advised subsidiaries Forsyth Partners Global Distributors and Forsyth Partners Middle East on the liquidation proceedings.

Corporate partner Ashley Painter led the Clyde & Co team with associate Vanessa Abernethy and dispute resolution partner Michael Grose, who acted as an advocate at the hearing.

Eversheds worked with Reed Smith, fielding a team under London corporate partner Byron Nurse, finance partner Paul de la Pena and associate Jamie Leader.

The first-ever winding-up hearing before the DIFC Court was heard last month (19 September), and saw Grant Thornton appointed as liquidators.

Reed Smith was appointed by the court order to act for the liquidators for all three subsidiaries in Dubai.

The DIFC, which was set up in 2004, has its own governing legislation - based strongly on UK legislation - and houses the majority of the international finance concerns operating in Dubai.

The proceedings were made more complex by the fact that this was the first time the legislation governing insolvency has been put to the test.

Angle told Legal Week: "This jurisdiction is still feeling its way as the law is new and the court approached it in a careful, sensible way."