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Administrators comprehensively cleared of allegations regarding sale of ‘The Vase’ site (Re One Blackfriars)

Administrators comprehensively cleared of allegations regarding sale of ‘The Vase’ site (Re One Blackfriars)
Published on: 26 March 2021
Published by: LexisPSL
  • Administrators comprehensively cleared of allegations regarding sale of ‘The Vase’ site (Re One Blackfriars)
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Case details

Article summary

Restructuring and Insolvency analysis: Liquidators of a company brought a claim for £250m against its former administrators. The company’s main asset was a hole in the ground—a development site in Blackfriars, London. The allegations were wide-ranging but broadly fell into three alleged categories of failure: (1) to act independently and in accordance with their legal duties; (2) to properly assess the value of the site, in particular its planning potential; and (3) to market and sell at value. The case provides useful guidance as to the scope of administrators’ duties, particularly in the context of the sale of a development property asset, and the threshold tests for establishing breaches of those duties. The court rejected every disputed aspect of the liquidators’ case and held that the administrators had acted independently, in accordance with their obligations, and had sold the site for its market value. Interesting observations were also made regarding remote trials. Written by Ben Smiley, barrister at 4 New Square and counsel to the respondents. or take a trial to read the full analysis.

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