Key Points
There is a low threshold for the granting of an injunction to prevent the presentation of a winding up petition.
The challenge against the debt in the statutory demand must be in good faith and have sufficient substance.
The Facts
The Facts
A liquidator applied for permission to amend his claim for fraudulent trading. The claim against the respondents related to purported defrauding of HMRC for non-payment of VAT.
Associate Martin Cox considers the recent High Court decision of Peel Port Shareholder Finance Company Ltd v Dornoch Ltd, in which the court declined to exercise its discretion under the Civil Procedure Rules (“CPRs”) to order the pre-action disclosure of an insurance policy held by a solvent insured. The article considers the extent to which the outcome in this case is consistent with the overriding objective that courts dispose of cases justly and at proportionate cost.
5 What will happen if a Type A event occurs? If a Type A event occurs without appropriate steps being taken there can be a number of consequences. (i) Impact on relationship with pension scheme trustees Pension schemes have long term liabilities. Sponsoring employers therefore generally expect to have a long term relationship with the trustees of their scheme. That relationship could be damaged if a Type A event occurs and the trustees are not kept informed or if they consider that their concerns about such events have not been addressed.
Investors may, for reasons outside of their control, find themselves with a financially distressed company in their portfolio and possibly in unfamiliar territory. Consequently, it is not just those investors who actively seek out opportunities within the distressed space who should be mindful of the implications of insolvency processes (most commonly administration which can often also be used as part of a wider restructuring).
Following three profit warnings in recent months, the collapse of Carillion under a mountain of debt could hardly be described as a surprise. The fact that Carillion has entered compulsory liquidation may raise eyebrows. Administration would have allowed the company to continue operating whilst buyers were sought for those parts of the business that remained viable; liquidation is an acknowledgement that, by the time it collapsed, Carillion simply had no assets to sell that anyone would have been interested in buying. All that was left were the contracts.
The Facts
The latest decision in the Shlosberg saga that has turned the issue of privilege and use of documents on its head - this time considering the practical implications of how office holders can use information they have obtained by compulsion for the purposes of their investigations.
The Facts
Stevensdrake Limited, a law firm, made a claim against a Liquidator for fees owing under a Conditional Fee Agreement (CFA) made between the two on 10 April 2008. The parties had worked together on various insolvency matters for many years.
At just before 7.00am on Monday 15 January 2018 following an urgent telephone hearing, a High Court Judge agreed to place six of the Carillion Group companies into compulsory liquidation and appoint the Official Receiver as Liquidator. At the same time, six partners of PwC were appointed as Special Managers to assist the Liquidators.
Case Alert - [2018] EWHC 95 (Comm)
Court considers whether deed of indemnity from insurer is adequate security for costs