The Facts
A owned two properties, one of which had been divided into two separately rateable properties for council tax purposes. R presented a bankruptcy petition against A based on a purported debt of £14,097.59 owed by A in respect of unpaid council tax for which it had obtained liability orders from the Magistrates Court.
Key points
Rights under s23, s24 and s31 of the Matrimonial Causes Act 1973 (the “Act”) can only be pursued by the spouses themselves. Consequently, any ongoing action brought pursuant to those sections of the Act does not vest in the trustee in bankruptcy on appointment.
The facts
Key points
- Without notice applications for recognition orders carry the obligation of full and frank disclosure to the English court in relation to the effect such orders may have on third parties.
- Failure to provide full and frank disclosure may have cost consequences.
The facts
Key Point
The court adjourned a bankruptcy hearing on the basis that a Spanish court sanctioned liquidation plan for a group of companies in which the debtor had an interest might release value for creditors.
The Facts
Key Points
- Receivers only owe a duty of care to those parties who hold an interest in the equity of redemption.
- Upon the making of a bankruptcy order, the bankrupt ceases to participate in any such interest and the equity of redemption vests in the trustee in bankruptcy.
The Facts
Key Point
Judgment sets out the rationale behind validating three payments made by a Company after the presentation of a winding up petition.
The Facts
This was the third application made by Sahaviriya Steel Industries UK Limited (the “Company”) in connection with payments made that would require validation under s127 Insolvency Act 1986. The payments were necessary to keep part of its business going pending discussions on sale or restructuring.
The Decision
Key Point
Judgement provides detailed guidance on administrators making distributions in relation to EU incorporated companies.
The Facts
The UK High Court today took a crucial step towards resolving the difficult issue of when administrators must pay rent.
After nearly two years of discussion and consultation, the UK Government has today announced that it will not be seeking to introduce new legislative controls on pre-packs, including a proposed three day notice or "cooling off" period.
The term “pre-pack” typically refers to a sale of all or part of a company’s business which is negotiated prior to the company going into administration and then completed by the administrator shortly after his appointment.
Last week the High Court of England and Wales revoked a company voluntary arrangement (CVA) promoted by retailer Miss Sixty in a damning judgment that called into question the conduct of the practitioners involved. The case of Mourant & Co Trustees Limited v Sixty UK Limited (in administration) [2010] could end so-called guarantee stripping – where the CVA purports to discharge guarantees given by a third party – and provide powerful ammunition to landlords seeking to negotiate future CVAs with tenant companies.