(judgment 22/2009)

This case concerned whether the English Court of Appeal decision in Re Bayoil S.A. (the “Bayoil Case”) would be persuasive in Guernsey and how the Royal Court of Guernsey should exercise its discretion under section 406 of the Companies (Guernsey) Law 2008 (the “Law”).  

Introduction

The current geo-political climate is contributing to the rapid rise to inflation rates in many countries around the world. Governments have reacted with an inevitable increase to interest rates to try and offer some form of counterbalance to rising costs in an effort to stymy localised, and more widespread, economic recessions.

The memorandum has been prepared on the basis of the law and practice in Guernsey as at 1 April 2010.

Introduction  

(Judgment 3/2009)  

The liquidators of Flightlease (Guernsey) Limited (“FLGL”) applied to the Court for an order that no dividends be paid in the liquidation of FLGL to Flightlease (Ireland) Limited (“FLI”) in respect of guarantees given by  

FLGL in respect of FLI’s liabilities. FLI’s liabilities to FLGL were outweighed by the liabilities owed in the opposite direction.  

This article was originally published by ThoughtLeaders4 FIRE.

Introduction

There was a distinct air of positivity and delight to be out and about networking again at the FIRE Starters Global Summit in Dublin. Once again the event was well attended by a wonderful and dynamic group of international professionals from across the advisory spectrum in asset recovery, fraud and insolvency and many new networks were forged over the fun three-day event.

Advocates Mathew Newman and Sam Dingle acted for the Joint Administrators of a Guernsey company (Company), which was a party to ongoing court proceedings in England.

The Joint Administrators applied to the Royal Court of Guernsey seeking an order that it issue a Letter of Request to the High Court of Justice of England and Wales, requesting the High Court to act in aid of and auxiliary to the Royal Court pursuant to section 426 of the Insolvency Act 1986 (1986 Act) in recognising the appointment of the Joint Administrators as administrators of the Company.

This article first appeared in Offshore Red.

Guernsey is a jurisdiction that is well used to requests from foreign insolvency office holders for assistance in collecting in assets located in Guernsey. Occasionally these requests involve assistance in interviewing former directors of companies in an insolvency process.

Ogier's team continues to be at the forefront of Restructuring and Insolvency law, acting in two matters that have broken new ground in Guernsey recently.

Partner Mathew Newman appeared before the Guernsey Royal Court for the applicants in two matters which raised several legal issues, some of which have not been addressed previously by the court.

In order to proceed against a debtor's personal property in Guernsey, customary law remedies are used which start with the arrest of a debtor's goods but which allow all creditors to share in the proceeds in the event that the monies owed are greater than the debtor's assets.

Arrêts

Once judgment is obtained against a debtor, the 'arresting creditor', will either:

The recognition of the powers of an English trustee in bankruptcy in Guernsey is generally pursued either by way of a letter of request issued by the foreign court pursuant to section 426 of the Insolvency Act 1986 (Insolvency Act) or by way of an application via the common or customary law.