In a comprehensive judgment arising out of the collapse of Lehman Brothers, the UK Supreme Court recently determined the ranking of creditors.
Principally, the Court held that Lehman Brothers International (Europe)'s subordinated debt holders were "at the bottom of the waterfall", behind statutory interest and non-provable debt claimants.
Summer 2017
Editor: Melanie Willems
IN THIS ISSUE
You Swynson, you lose some
by Robert Blackett 03
10
14
The rule of English law - why Brexit, however blindly foolish it
is, should not matter for arbitration
by Melanie Willems
Unintended consequences - be clear what you advise on
by Ryan Deane
T H E A R B I T E R [ S E A S O N ] 2 0 1 7 2
T H E A R B I T E R S U M M E R 2 0 1 7 3
You Swynson, you lose
some
by Robert Blacke
Lowick Rose LLP (in liquidaon) v Swynson
What is its aim?
The general principle of the protocol makes sense: provide the debtor with all the information in order that they can make an informed decision, and respond regarding payment or any issues they disagree with and try and avoid involving the court where possible. In a genuine dispute where proceedings might otherwise be brought prematurely before the individual debtor had a chance to review and consider all the information, this level of consumer protection is welcomed.
The Facts
A former director of the Torex group of companies pursued proceedings against the group’s administrators, bankers and the purchaser claiming that the sale had been at an undervalue, that the bank and purchaser conspired by unlawful means in respect of the sale and that the administrators had been negligent in distributing the prescribed part. The administrators, bank and purchaser all applied to strike out the claims by way of summary judgment.
Claims Against Administrators
The Facts
RBK Engineering Ltd served a winding up petition on Breyer Group Plc, a construction company and contractual counterparty, alleging that it owed £258,729.16 and had admitted its insolvency. Breyer Group Plc applied to strike out the winding up petition on the basis that it was an abuse of process. It argued that it was solvent and had substantial counterclaims of its own.
The Decision
What role does The Pensions Regulator have when pension schemes need protecting? In episode seven of Pensions in 30 Podcasts, we look further into contribution notices and financial support directions and when they can be brought into play.
Click here to listen to the podcast.
Key Points
Key Points
- S 304 of the Insolvency Act 1986 is concerned with acts or omissions by a trustee in bankruptcy that have caused loss or damage to the estate
- However, the wording of that Section does not go so far as to state that in no circumstances can a trustee owe an enforceable duty in respect of loss or damage caused to the bankrupt personally.
The Facts
The case of Singularis Holdings Ltd v Daiwa Capital Markets Europe Ltd [2017] EWHC 257 (Ch) concerned the liability of a stockbroking company for failing to investigate fraudulent transactions.
Ever since the introduction of the ‘out of court’ procedure to appointment an administrator, there has been a practice of filing successive Notices of Intention to Appoint an Administrator. This practice has been the topic of much discussion and its legality was recently addressed by the Court of Appeal in the case of JCAM Commercial Real Estate Property XV Limited –v- Davis Haulage Limited [2017] EWCA Civ 267.
Introduction
In Akers & Ors v Samba Financial Group (Rev 1) [2017] UKSC 6, the UK Supreme Court confirmed that British insolvency officers can only void dispositions of a company's assets held on trust in certain circumstances.