Speed Read
Key Points
- Paragraph 13 of Schedule 4 to the Insolvency Act 1986 ("Paragraph 13") permits a liquidator to do all acts "necessary" for the winding up and distribution of property.
- The decision as to what action is "necessary" is one for the liquidators (albeit subject to sanction).
- Nothing in FSMA 2000 prevented the investors from assigning their claims against the former operators..
The facts
Key Point
The Court has given guidance on when a company in administration has possession of third party assets allowing an administrator to apply for an order allowing him to sell them.
The Facts
The administrators of a company applied to Court under paragraphs 72 and 68 of Schedule B1 to the Insolvency Act 1986 for permission to sell assets located on its freehold premises pursuant to a chattel hire contract with a group company (the "Assets").
The Decision
The High Court has recently considered whether to exercise its jurisdiction to hear winding-up petitions brought against two companies incorporated in Saint Vincent and the Grenadines.
The Facts
Key point
Administrators are entitled to remuneration for the full period of office even where work is carried out outside of the scope set out in proposals agreed by creditors
Facts
Fibria Celulose S/A v. Pan Ocean [2014] EWHC 2124 (Ch)
In a significant case regarding the application of the Cross Border Insolvency Regulations 2006 (“Regulations”), the English High Court decided it would not intervene to prevent termination of an English law contract for insolvency even though such termination was inoperative or invalid under the foreign law governing the insolvency.
Key point
This case demonstrates how reservation of legal rights can be key even if the parties are seeking a commercial solution
Facts
Key Issue
A former liquidator would not be entitled to relief from liability under section 212 of the Insolvency Act 1986 where her conduct had fallen well short of the standard to be expected and she had paid away substantial sums which would otherwise be available to creditors.
The Facts
Key Point
Liability for utility bills arising in an administration after trading had ceased did not rank as an expense of the administration.
The facts
Key Points
- Court cannot grant relief under the UK Cross Border Insolvency Regulations 2006 (CBIR) where it could not provide such relief in a domestic insolvency.
- Even if such option were possible, court would not do so where a contract is governed by English law.
- Possibility of effectively applying provisions of foreign law under the CBIR restricted.
The Facts