When is it too late to amend in insolvency proceedings? (Cohen and another v Co-Operative Group Ltd and others)
Restructuring & Insolvency analysis: In a reserved judgment, His Honour Judge Hodge KC (sitting as a judge of the High Court) refused the liquidators permission to amend their points of claim in insolvency proceedings. The effect of the proposed amendments would have increased the value of the claim from an estimated £202.9m (valuation of assets alone) to an estimated £632.1m (valuation of the business and assets). In refusing permission, it was acknowledged that the outcome may seem harsh to the liquidators and the company’s creditors; however, it was remarked that the liquidators only had themselves (and, potentially, their advisers) to blame. The decision provides a salutary reminder to practitioners that there are no special rules for amendments in insolvency proceedings and therefore the importance of properly pleading a case from the outset, or amending it as soon as possible, should not be overlooked. Written by Dale Timson, barrister at Enterprise Chambers.