Is an Out-of-Hours Administrator Appointment Valid? Nobody knows

11 March 2020

In Woodside and Ratten v Keyworker Homes (North West) Ltd, the High Court considered a directors’ appointment of administrators, which was made outside court opening hours. The case was caused by the uncertain and contradictory law that surrounds out-of-hours appointments. The directors of the Keyworker Homes (North West) Ltd (the Company) electronically filed at court […]

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IP’s Susceptible to Non-Party Costs Orders

18 December 2019

The High Court has made a non-party costs order against an insolvency practitioner firm, requiring it to pay the legal costs of unsuccessful proceedings brought by one of its partners.

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Challenging CVAs – It’s a Challenge

15 October 2019

Approximately 16 high street stores have closed their doors every day in the first half of 2019, while only nine opened, resulting in a net decline of 1,234 chain stores on Britain’s top 500 high streets. Many chains entered into Company Voluntary Arrangements to manage their financial troubles, but such arrangements can prejudice the interests of some creditors.

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Can a Company in a CVA Enforce an Adjudication Award?

14 June 2019

In Indigo Projects London Ltd v Razin & Anor the Court declined to enforce an adjudicator’s decision as it would interfere with the accounting exercise of Indigo’s Company Voluntary Arrangement (CVA).

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A Director’s Duty

18 March 2019

When a company is solvent, the primary duty imposed on directors is to promote the success of the company for the benefit of its shareholders. This duty is codified at section 172(1) of the Companies Act 2006. However, that position changes when a company is insolvent, or close to insolvency.

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Court of Appeal shuts the door on insolvent companies adjudicating

24 January 2019

Fladgate acted for the successful respondent in MJ Lonsdale v Bresco. The Court of Appeal decision was handed down this morning. The judgment will inevitably impact on the construction industry. Digby Hebbard and Oliver Tobin discuss this important decision.

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Found you! – Peering behind the corporate veil

8 November 2018

In dismissing a defendant’s ‘corporate veil’ defence, the High Court has made it clear that it can and will allow claims to be made against directors and shareholders in the appropriate circumstances (Palmer Birch v Lloyd & Anor [2018] EWHC 2316 (TCC).

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Purpose or Consequence?

27 July 2018

The recent Court of Appeal decision in JSC BTA Bank v Ablyazov and anr [2018] EWCA Civ 1176, has clarified the “prohibited purpose” test under section 423 of the Insolvency Act 1986 (IA). The litigation is part of the large scale fraud involving Mukhtar Ablyazov, the first defendant and controller of JSC BTA Bank (Bank) […]

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Solvency statement: breach of directors’ duties results in personal liability

25 May 2018

Three company directors were found to have acted in breach of duty, and thus have assumed personal liability in connection with a reorganisation which left the company unable to meet its own liabilities without the assistance of its subsidiaries in LHR Services Ltd (in Liquidation) v Raymond Arthur Trew, Jason Marcus Brewer, Derek O’Neill. As […]

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Insolvency – Challenging pre-pack sales

24 May 2018

A ‘pre-pack’ is where a company in financial difficulty arranges the sale of its business before entering administration (a form of insolvency process). Immediately upon the company entering administration, and without first notifying creditors, the administrators sell the company’s assets to a third party. Creditors of the company that has entered administration are only likely […]

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