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English High Court places US company into Administration

On 7 October 2016 Ashfords' Restructuring and Insolvency Team, led by partner Alan Bennett, assisted the directors in securing an Administration order in respect of Ronin Development Corporation (the "Company").

The Company was incorporated in Princeton, New Jersey, in October 1986 under the New Jersey Business Corporation Act, and is a global marketing, consulting and research company.

On 7 October 2016 Ashfords' Restructuring and Insolvency Team, led by partner Alan Bennett, assisted the directors in securing an Administration order in respect of Ronin Development Corporation (the "Company").

The Company was incorporated in Princeton, New Jersey, in October 1986 under the New Jersey Business Corporation Act, and is a global marketing, consulting and research company.

Supreme Court of Gibraltar recognises United States Chapter 11 bankruptcy proceedings as a foreign main proceeding.

Having launched the original version three years ago, we have refreshed our Safeguarding Your Business guide as an eBook. The guide assists clients in protecting themselves either proactively or reactively in respect of a counterparty’s insolvency with new sections on trusts and examples of how we have helped, using some of the principles raised.

Key Points

  • Interpretation of EU case law on protection of pension payments on employer insolvency not “entirely free from doubt”

The Facts

The claimant (C) was a member of the T&N defined benefit pension scheme from 1971 to 1998. In 2006, the scheme entered a PPF assessment period and C calculated that his pension under the PPF would, as a result of caps and limitations on indexation, be roughly 67% less than what he had previously expected.

Key Points

  • Trustees in bankruptcy entitled to more than return of shares wrongfully transferred by bankrupt
  • Trustees also entitled to recover loss in the value of shares
  • Appropriate basis of valuation was fair value (not market value)

The Facts

Key points

  • Court does not have jurisdiction to direct detailed assessment of fees agreed by administrators on application of liquidator
  • Administrators can agree solicitors’ fees for work carried out during the administration after they cease holding office
  • The court has no inherent jurisdiction to direct a detailed assessment

The facts

Key Points

  • Court held notice to scheme creditors (here two weeks) was not sufficient in light of complexity of scheme
  • Court also highlighted deficiencies in supporting documentation

The Facts

Key points

  • Principles applying to exercise of liquidators’ powers are the same as those prior to legislative changes
  • Views of creditors influenced by personal considerations to be disregarded
  • The overriding requirement is for liquidators to exercise their professional judgment in the best interests of creditors

The facts