In Nordic Power Partners v Rio Alto Energia [2025] EWHC 2875 (Comm), the Commercial Court granted interim injunctions to restrain the distribution of c.US$8m of proceeds from the sale of solar power plants in Brazil.
The applicants (the “NPP Parties”) and the first respondent (“RAE”) jointly owned three solar power plants in Brazil (the “Projects”) which are in the process of being sold to a third party. A dispute arose as to how the proceeds of that sale were to be distributed. The NPP Parties contended that they were entitled to 100% of the proceeds, whereas RAE claimed to be entitled to receive approximately US$8m of the proceeds. The disputes between the parties were the subject of English court proceedings and London-seated arbitration.
The NPP Parties applied ex parte for interim injunctions to restrain the distribution of the disputed proceeds pending the resolution of the parties’ disputes. The injunctions were granted by Robin Knowles J.
The return date was heard before Lionel Persey KC (sitting as a High Court Judge). In continuing the injunctions, the Judge accepted that damages would not be an adequate remedy for the NPP Parties because there was at least a real risk that RAE would enter insolvency and be unable to satisfy an award of damages. By contrast, the injunctions would not themselves cause RAE to go out of business. The Judge also took into account the “strong likelihood” that the NPP Parties would establish at trial that they are entitled to 100% of the sale proceeds. The Judge rejected RAE’s submission that orders made by the Brazilian court meant that he should, for reasons of comity, refuse to continue the injunctions.
Douglas Grant acted for the successful applicants, instructed by Lee Bacon, Felipe Sperandio and Nikita Damburgs of Clyde & Co.
