Liquidators of GTLK Europe Sue Underwriters for Payouts

Irish liquidators representing GTLK Europe and GTLK Europe Capital, formerly Irish subsidiaries of Russian state-owned lessor GTLK – State Transport Leasing, have initiated lawsuits against multiple underwriters in English courts. The liquidators seek payouts for aircraft stranded in Russia since February 2022. Defendants include Starr International Europe, Axis Specialty Europe, Fidelis Underwriting, JSC Rosgosstrakh Insurance Company, The Russian National Reinsurance Company, Liberty Mutual, and The Oriental Insurance Company.

The liquidators argue that the two Irish firms are no longer controlled by GTLK, following a May 2023 Irish High Court ruling ordering their liquidation. The liquidation renders them victims, not perpetrators, of Russia’s policy to refuse the return of sanctioned aircraft after the invasion of Ukraine. With the assets of the former Irish units held in trust on behalf of non-Russian creditors since August 2023, the liquidators are pursuing insurance payouts as a last resort to recover funds.

Russian authorities have cautioned carriers in the country against using GTLK-owned aircraft on international flights due to the risk of seizure on behalf of GTLK Europe’s creditors. Other lessors, including AerCap and SMBC Aviation Capital, have secured insurance settlement agreements directly with Russian firms for stranded aircraft. AerCap received USD645 million, while SMBC Aviation Capital obtained USD710 million in return for waiving all claims to the grounded assets.