Pending petition—considering applications to adjourn petitions for bankruptcy (Aabar Block SARL an another v Maud)

Pending petition—considering applications to adjourn petitions for bankruptcy (Aabar Block SARL an another v Maud)

What was the registrar’s consideration of a second adjournment of a petition, pending the outcome of a liquidation process in Aabar Block SARL v Maud? John Alderton, partner and Jon Chesman, associate, at Squire Patton Boggs who acted for the respondent, examine the details.

Original news

Aabar Block SARL an another v Maud [2015] EWHC 3681 (Ch), [2015] All ER (D) 233 (Dec)

The Bankruptcy Court granted a debtor’s application for a second adjournment to the hearing of a petition for him to be adjudged bankrupt where an immediate bankruptcy order would not—on the balance of probabilities—benefit the general unsecured creditors at the present point in time. Nor would it in circumstances where a liquidation plan in Spanish proceedings could result in the debtor being able to meet all creditor claims and where it was held that the petitioners had had an ulterior object in pursuing the petition.

What was the background to the application?

This was the second hearing of the bankruptcy petition presented by Aabar Block SARL and Edgeworth Capital (Luxembourg) SARL against Glenn Maud, a commercial property investor. Mr Maud’s sole asset—in the context of the size of the petition debt—is his interest in a group of companies that holds a significant piece of commercial real estate in Spain (Santander’s finance city in Madrid which is conservatively valued at €3bn). The group entered into Spanish insolvency proceedings and the court-supervised process of liquidating or refinancing the group’s assets was underway.

At the first hearing of the petition on 7 July 2015, Mr Maud successfully applied to adjourn the petition, pending the outcome of the liquidation process in Spain. Mr Maud argued that the liquidation process should be allowed to run its course prior to any bankruptcy order being made. He argued that, in the event that the group was successfully refinanced, he stood to realise his equity in

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About the author:

Stephen qualified as a solicitor in 2005 and joined the Restructuring and Insolvency team at Lexis®PSL in September 2014 from Shoosmiths LLP, where he was a senior associate in the restructuring and insolvency team.

Primarily focused on contentious and advisory corporate and personal insolvency work, Stephen’s experience includes acting for office-holders on a wide range of issues, including appointments, investigations and the recovery and realisation of assets (including antecedent transaction claims), and for creditors in respect of the impact on them of the insolvency of debtors and counterparties.