Royal Court authorises a 'pre-packaged' sale pursuant to Article 155 of the Companies (Jersey) Law 1991
The Royal Court has, for the first time, authorised liquidators to enter into a ‘pre-packaged’ sale under Article 155 of the Companies (Jersey) Law 1991. In doing so, the court noted the risks involved with ‘pre-pack’ sales and stressed that it was not directing the liquidators to enter the ‘pre-packaged’ sale (whether or not the sale was in the interests of the creditors was a decision to be made by the liquidators) but merely authorising them to do so under the law.
The case concerned a group of companies involved in retail in Jersey (the Collections Group) that, due to poor trading conditions, were insolvent on both a cashflow and balance-sheet basis. The Collections Group had substantial liabilities to banks, suppliers, the tax authorities, landlords and employees, the upshot of which being that if the order requested from the court was not made the Collections Group would have had to cease trading immediately, with limited recoveries for any creditor…
If you are registered and logged in to the site, click on the link below to read the rest of the Mourant Ozannes briefing. If not, please register or sign in with your details below.
News from Mourant Ozannes
Briefings from Mourant Ozannes
Jersey Court of Appeal confirms rights of non-trustee fiduciaries to an indemnity out of the trust fund
On appeal from the Royal Court, the Jersey Court of Appeal held that a fiduciary in relation to a trust had an identical right of indemnity in equity out of the trust fund as a trustee.
The interpleader proceedings in Guernsey are dealing with substantial assets claimed to be the proceeds of a fraud alleged against Nikolai Battoo and the BC Capital Group.