Beautiful Virgin Islands

Thursday, Sep 18, 2025

VI court freezes assets in $6b case

VI court freezes assets in $6b case

A Virgin Islands court has frozen shares in two hotels belonging to Pakistan’s national airline in one of the highest-dollar cases ever mediated through the territory’s courts. The order may soon put to the test a new

VI law designed to facilitate the recovery of assets hidden behind multiple companies.

Late last month, the VI Commercial Court, at the request of an Australian mining venture seeking to enforce a $6 billion award levied through the World Bank’s International Centre for Settlement of Investment Disputes, issued an order allowing Australia’s Tethyan Copper Company to enforce up to $3.1 billion of the award. The award is the largest ICSID settlement yet, and among the largest-ever awards in the VI as well.

ICSID is an entity set up to mediate disputes involving direct foreign investment by developed countries in less-developed ones.

Licence dispute


The case stems from a nearly decade-long dispute surrounding a licence from the Pakistani government granted to the Australian company to develop copper and gold mining ventures in the Balochistan region, one of the world’s largest untapped mineral deposits, according to court documents and news reports.

Last year, Pakistan agreed to pay damages of $5.84 billion to Tethyan Copper for blocking the permit after the company had sunk $220 million into the project, Reuters reported. Interest, damages and legal fees over the course of nearly a decade resulted in the massive award, court documents explained.

A subsequent discovery of facts turned up the hotels in question, which are split between two VI entities.

Subsequently, the court issued two orders: one allowing Tethyan Copper to enforce up to $3.1 billion of the award, and another freezing the shares in two VI companies — PIA Investments and PIA Hotels — owned by Pakistan International Airways, which is majority owned by the Pakistan government.

The order also froze the airline’s 40 percent interest in a third VI company, Minhal Incorporated.

The first two companies indirectly own the Roosevelt Hotel in Manhattan and the Scribe Hotel in central Paris, according to court documents.

The receiver, Paul Pretlove of VI firm Kalo Advisors, is tasked with ensuring the hotels are not sold at below market value and securing the proceeds of any sale that occurs, the documents explain.

Many jurisdictions have faced challenges enforcing awards when parties, including governments, hide behind multiple companies in an effort to avoid payment, using a technique known as “layered asset protection structures,” according to legal experts.

The VI’s Charging Orders Act 2020, which came into force last March, was an attempt to combat this practice, and the Tethyan case is set to put it to the test for the first time.

At the time the act was passed, then-Attorney General Baba Aziz explained the reason- ing behind it to the House of Assembly.

“Some judgment debtors seek to avoid the enforcement of judgments of the High Court,” he said, adding, “The enactment of this bill will demonstrate that the territory is not a haven for recalcitrant debtors and those who would seek to evade justice by means of, in part, the use of asset-protection structures.”

The court’s powers apply to foreign judgments and awards once they become enforceable as a VI judgment, which ensures that a local court can enforce a foreign judgment or award against assets under its jurisdiction, according to the text of the bill.

The value of the 1,000-room Roosevelt Hotel has been disputed, but it was valued at $1 billion when the PIA sought to sell it in 2007, court documents stated.

The hotel, which opened in 1924, closed last month after its revenue was gutted by the Covid-19 pandemic.

Proponents of the Charging Orders Act have called the law timely because the VI has been looking to broaden its economic platform and build confidence in its marketplace. “As we move commerce forward in the Virgin Islands, I think that this is a mature step,” Health and Social Development Minister Carvin Malone said last year when the law was discussed in the HOA.

A hearing on Tethyan’s bid to make the charging order final is scheduled for March.

In the VI proceedings, Tethyan is being represented by Gibson Dunn & Crutcher, Martin Kenney & Co., and Joshua Folkard of 4 New Square.

KRyS Global is providing ex- pert evidence on asset recovery.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Macron and his wife to provide 'scientific photographic evidence' that she is a real woman
US Tech Giants Pledge Billions to UK AI Infrastructure Following Starmer's Call
Saudi Arabia cracks down on music ‘lounges’ after conservative backlash
DeepMind and OpenAI Achieve Gold at ‘Coding Olympics’ in AI Milestone
SEC Allows Public Companies to Block Investors from Class-Action Lawsuits
Saudi Arabia Signs ‘Strategic Mutual Defence’ Pact with Pakistan, Marking First Arab State to Gain Indirect Access to Nuclear Strike Capabilities in the Region
Federal Reserve Cuts Rates by Quarter Point and Signals More to Come
Effective and Impressive Generation Z Protest: Images from the Riots in Nepal
European manufacturers against ban on polluting cars: "The industry may collapse"
Sam Altman sells the 'Wedding Estate' in Hawaii for 49 million dollars
Trump: Cancel quarterly company reports and settle for reporting once every six months
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
US Launches New Pilot Program to Accelerate eVTOL Air Taxi Deployment
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
Hong Kong Industry Group Calls for HK$20 Billion Support Fund to Ease Property Market Stress
Joe Biden’s Post-Presidency Speaking Fees Face Weak Demand amid Corporate Reluctance
Charlie Kirk's murder will break the left's hateful cancel tactics
Kash Patel erupts at ‘buffoon’ Sen. Adam Schiff over Russiagate: ‘You are the biggest fraud’
Homeland Security says Emmy speech ‘fanning the flames of hatred’ after Einbinder’s ‘F— ICE’ remark
Charlie Kirk’s Alleged Assassin Tyler Robinson Faces Death Penalty as Charges Formally Announced
Actor, director, environmentalist Robert Redford dies at 89
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
JD Vance Says There Is “No Unity” with Those Who Celebrate Charlie Kirk’s Killing, and he is right!
Trump sues the 'New York Times' for an astronomical sum of 15 billion dollars
Florida Hospital Welcomes Its Largest-Ever Baby: Annan, Nearly Fourteen Pounds at Birth
U.S. and Britain Poised to Finalize Over $10 Billion in High-Tech, Nuclear and Defense Deals During Trump State Visit
China Finds Nvidia Violated Antitrust Laws in Mellanox Deal, Deepens Trade Tensions with US
US Air Force Begins Modifications on Qatar-Donated Jet Amid Plans to Use It as Air Force One
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
Elon Musk Retakes Lead as World’s Richest After Brief Ellison Surge
U.S. and China Agree on Framework to Shift TikTok to American Ownership
London Daily Podcast: London Massive Pro Democracy Rally, Musk Support, UK Economic Data and Premier League Results Mark Eventful Weekend
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Musk calls for new UK government at huge pro-democracy rally in London, but Britons have been brainwashed to obey instead of fighting for their human rights
Elon Musk responds to post calling for the murder of Erika Kirk, widow of Charlie Kirk: 'Either we fight back or they will kill us'
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
USA: Office Depot Employees Refused to Print Poster in Memory of Charlie Kirk – and Were Fired
Proposed U.S. Bill Would Allow Civil Suits Against Judges Who Release Repeat Violent Offenders
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
×