The much-anticipated UK Supreme Court decision in BTI 2014 LLC v Sequana SA & Ors was finally released, giving clarity to directors and insolvency practitioners about the existence, scope and engagement of the so-called “creditor duty”. A relatively recent development in English law, the creditor duty is in fact really a dormant creature of the existing directors’ fiduciary duties that awakens in an insolvency, or near insolvency, context.

Introduction

The court ruled that: