The executor of the estate of the deceased who had been the principal mover behind the Belgravia Group, was faced with two novel circumstances. First, the estate appeared totally insolvent but yet the executor had no set of rules to deal with creditors (the Bankruptcy (Désastre) (Jersey) Law 1990) does not apply to the property of a deceased). The Royal Court considered the matter and ordered a process which mirrored the rules applying to a désastre.

The current position

In one of a number of cases in which Bedell Cristin has acted for English trustees in bankruptcy who have sought recognition in Jersey for the purposes of seeking documents from Jersey trustees in order to trace assets of the bankrupt, the court was asked to recognise the trustee, even though the petitioning creditor in the bankruptcy was a foreign revenue (HMRC), whose claim comprised 99.8% of all claims against the bankrupt. There is a long established rule in England, Jersey and elsewhere which prevents enforcement of foreign revenue claims.

Background

The concept of cell companies was first introduced to Jersey in February 2006. In addition to the widely recognised principle of the protected cell company ("PCC"), a new concept of incorporated cell company ("ICC"), the first of its kind, was also implemented.

KWL Advertising Limited (in liquidation) ("KWL") -v- Kountouris & Kountouris, Guernsey UnreportedJudgment, 18 October 2006

In the matter of the Representation of Gregory Branch and Lee Manning, Joint Liquidators of AAA Holdings Limited (in liquidation) [2009]JRC110

This judgment is of interest as being the first occasion on which the Royal Court in Jersey was asked to sanction the compromise of a claim under Article 170 of the Companies (Jersey) Law 1991 (the "Companies Law").

Bisson -v- Barker, P. Bish, H. Bish and Viscount 2008 JLR N[46]

This decision addresses the court's powers to order the winding up of a company on just and equitable grounds pursuant to Article 155 of the Companies (Jersey) Law 1991.
The company in question (the "Company") had operated two businesses in the Island. Relations between certain of the shareholders, involved in the management of the two businesses, broke down, such that it became impossible for them to continue to work together.

The Viscount

On February 23, 2009, Pennsylvania became the second state to recognize an "ordinary course of business" exception to preference actions brought under a state insolvency statute where the defense is not expressly provided for in the statute. In Joel S. Ario, Insurance Commissioner of the Commonwealth of Pennsylvania, in His Official Capacity as Liquidator of Reliance Insurance Company, Appellant v. H.J. Heinz Company, H.J. Heinz Company, L.P., H.J. Heinz Finance Company, and Portion Pac, Inc., et al., Appellees, No. 21 MAP 2006 (Pa. Feb.

Given the current state of the economy, it should come as no surprise that business related bankruptcy filings increased 41.6 percent and non-business bankruptcies increased 28.4 percent between June 30, 2007, and June 30, 2008, with more than one million Americans filing for bankruptcy during calendar year 2007, according to the Administrative Office of the U.S. Courts.