The effect in England of the assignment of a debtor's property under the bankruptcy law of a foreign country is subject to certain limitations:

(1) The assignment only takes place if under the law of the foreign bankruptcy provision is made for the extra territorial effect of the bankruptcy and

(2) The property in England passes subject to any existing charges upon it recognised by the law of England."

Provision has been made for the extra territorial effect of the bankruptcy since the assets of Mr. Holmaranta world-wide now vest in the trustees. Further the shares in Regatta Trading which are the subject of the dispute are not in any way charged."

In these circumstances this Court recognises the appointment of Mr. Leisvuori and Mr. Lahti as Trustees of the Estate in Bankruptcy of Mr. Holmaranta, by the Finnish Bankruptcy Court, pursuant to which Mr. Holmaranta's interest in the shares in Regatta Trading have been assigned to the Trustees.

Furthermore this Court is satisfied from the evidence of Mr. Leisvuori and the documentary evidence that the creditors approved the Agreement and that Mr. Holmaranta was given an opportunity to provide security for the figure finally agreed, that is the 10,000 US dollars but that he failed to do so. I follow Professor Majamaa's Opinion that Mr. Holmaranta's estate has abandoned the dispute and this is binding on Mr. Holmaranta. It would be quite absurd for Mr. Holmaranta to be permitted to proceed with his claim in this Court in the knowledge that his Trustees in bankruptcy in Finland had lawfully negotiated a settlement agreement with the opposing party, Mr. Lindroos.

Mr. Conti fought tenaciously for Mr. Holmaranta on this Motion. Mr. Conti submitted that the Agreement of 15th October is invalid. He submitted that if the Agreement was executed on 15th October 1997 with the money to be paid by the 20th October 1997, which is admitted by Mr. Caine, then it was too late for the Trustees to be consulting Mr. Holmaranta on the 4th November and inviting him to put up security at that stage.