Decision of the Södertörn Disctrict Court, 10 December 2008, Case No. K 13165-08
Summary: The creditor applied to the Södertörn District Court to declare the debtor’s bankruptcy due to debtor’s permanent incapacity to meet its liabilities as ordered by a separate award on advance on costs. The District Court considered that an order to pay as set out in a separate award on costs is not enforceable and it does not finally determine the allocation of costs between the parties. Thereby the Court found that the creditor could not rely on a separate arbitral award on costs to have the debtor declared bankrupt under Section 6 of the Swedish Bankruptcy Act. The District Court dismissed the creditor’s application for bankruptcy.