Partner Michael Barnett comments on the High Court ruling in Credit Suisse v SoftBank, in Law360

Partner Michael Barnett comments on the High Court’s dismissal of Credit Suisse’s $440 million claim against SoftBank, and considers the case’s implications for creditors, insolvency practitioners and corporate restructuring professionals.

One of the first major rulings in the numerous pieces of litigation arising out of Greensill’s collapse, this judgment of Lord Justice Miles raises serious questions for potential claimants seeking recourse under England and Wales’ insolvency legislation.

Extracts of Michael’s comments were published in Law360, 21 October 2025.

“Section 423 of the Insolvency Act 1986 is one of the most powerful tools for a victim of fraudulent transactions in the context of an insolvency seeking recourse in the UK. This was a rare case in which all of the requirements for a Section 423 claim were satisfied, yet the court declined to grant any relief.

“The court’s refusal to order relief despite finding that the transactions were made with the purpose of prejudicing creditors highlights the weight given to good faith and the realities of complex, cross-border restructurings. SoftBank was found to have acted honestly, believing that its funding would discharge Greensill’s debt to Credit Suisse – and by the time of judgment, any benefit it had received had become worthless following Katerra’s collapse.

“For claimants, this judgment underscores the importance of carefully framing the impugned transactions and gathering contemporaneous evidence of the debtor’s purpose over the full lifecycle of the transaction. For defendants, it provides reassurance that acting to protect their own commercial interests will not necessarily defeat a finding of good faith.

“Claimants should not however be alarmed by the fact that this claim bore no fruit for Credit Suisse. Despite that SoftBank were found to be good faith actors, the court nevertheless suggested they might have been required to compensate Credit Suisse should the shares in Katerra have held any value.

“Section 423 remains a key mechanism for addressing asset-stripping and fraudulent transfers, but this case is a reminder that success in establishing the legal elements of a claim does not guarantee a remedy – particularly where the economic reality has already moved on.”

“Fraud law practitioners, claimants and defendants alike, will watch on with interest to see whether the claimants in this case will seek permission to appeal to the Court of Appeal, and whether such permission will be granted. A key hurdle for the claimants will be that orders for relief in Section 423 actions are ultimately within the broad discretion of the court.