- Can a creditor with a disputed debt apply for an administration order? (Berkshire Homes (Northern) Ltd v Newbury Venture Capital Ltd)
- What are the practical implications of this case?
- What was this case about?
- What did the court decide?
- Case details
Restructuring & Insolvency analysis: The court considered the test applicable when a creditor applies for an administration order on the basis of a debt that the company claims is disputed and/or offset by way of cross claim. The court determined that a creditor has standing to bring the application, despite the fact that the debt is disputed and/or subject to a cross claim. However, where that same debt is relied upon to demonstrate that the company is unable to pay its debts, or likely to become unable to pay its debts, then the debt must be proved on the balance of probabilities. Written by Kate Rogers, barrister at Radcliffe Chambers, London.
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