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Sovereign Fund Wins $1 Billion Clash Over Frozen Funds

  • Court says creditors can’t try to lay claim to frozen assets
  • LIA says ruling reinforced primacy of European sanctions
Corrected

The Libyan Investment Authority won a decade-long court battle to fend off a creditor seeking to claim about $1 billion of assets that were frozen as part of an international crackdown on the regime of late Libyan leader Muammar Qaddafi.

France’s Cour de Cassation ruled on Wednesday against a Kuwaiti construction company and said creditors can’t seize frozen assets or claim precedence over them. The top court cited a 2021 decision by European Union judges which emphasized the “importance” of sanctions to justify any negative side effects for creditors.