We are pleased to announce that our Chapter 15 client, Go North Group AB, prevailed in a dispute with its largest trade creditor, BSB Industries LLC, in its Swedish reorganization proceedings.
After the commencement of the Chapter 15 case, but prior to the hearing to consider provisional relief, an arbitrator issued an interim award directing Go North to return the Playvibe and PlayBEA Amazon.com businesses, which it had previously purchased from BSB. Subsequently, the U.S. Bankruptcy Court “recognized” Go North’s Swedish reorganization proceeding and prohibited BSB from seeking confirmation of the award over BSB’s objection.
Subsequently, BSB filed an application in the Swedish proceeding seeking compensation for Go North’s failure to return the Amazon.com businesses as directed by the arbitrator’s award. Amini LLC submitted an affirmation, explaining that under U.S. law, arbitral awards are unenforceable until confirmed, even when the arbitration clause stipulates that the award is final and non-appealable.
The resulting Swedish decision denied BSB’s application, concluding that it was not possible to establish that BSB had the right to demand the return of the businesses, nor that such a right would be jeopardized by Go North’s actions or inaction. As a result, the court found no basis for granting the requested measures against our client.