This Practice Note concerns the House of Lords in its existing form as part of the legislature, and not in its former capacity as also part of the judicial system. The House of Lords continues to play a vital role in reviewing and amending legislation.
Restructuring & Insolvency analysis: The company successfully applied to convene a single meeting of its financial (non-trade) creditors for the purposes of considering and, if thought fit, approving, a proposed scheme of arrangement. The High Court had previously rejected Sunbird’s application for sanction of a scheme in near identical terms, having criticised the way in which the original scheme process had been approached by Sunbird. In returning to court, Sunbird sought to rectify a number of the deficiencies identified in the original judgment. Written by Darragh Connell, barrister at Forum Chambers.
Restructuring & Insolvency analysis: Pursuant to an application issued by the joint liquidators of AFM (1932) Ltd (AFM), the Insolvency and Companies Court was required to consider a complex web of transactions to discern whether there was any legitimate justification for payments made by AFM. The payments were in respect of construction works carried out at an Essex property owned by a company registered in the British Virgin Islands, Belisco Estates Ltd (Belisco) and for which AFM had received no payments in return. In assessing the relevant evidence and considering the contractual documentation relied upon by Belisco, the court repeatedly cited one of the themes of the F Scott Fitzgerald novel, ‘The Great Gatsby’, that ‘nothing is as it seems’. Insolvency and Companies Court Judge Jones ultimately rejected the arguments raised on behalf of Belisco and held, subject to an account and pleading issues, that there was a debt liability owed to AFM by Belisco. Notably, the court applied Rule 14.25 of the Insolvency (England and Wales) Rules 2016, SI 2016/1024 (IR 2016) in finding that Belisco were not entitled to set off payments purportedly made by it and on its behalf to discharge liabilities said to be owed by AFM to third parties. Written by Darragh Connell, counsel instructed by Howes Percival LLP on behalf of the joint liquidators of AFM (1932) Ltd.
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