Issues of standing resolved to reverse transactions defrauding creditors (Rendle v Cartwright)

Article summary

Restructuring & Insolvency analysis: The court held that a trustee in bankruptcy (trustee) could bring a claim under section 423 of the Insolvency Act 1986 (IA 1986) in his own capacity and as a ‘victim’ of a number of transactions entered into between a dissolved partnership, a company, and the bankrupt himself. The case will be of interest to practitioners because it demonstrates the treatment of partnerships in the insolvency context, the consideration given to the trustee’s standing under IA 1986, s 424, and the breadth of relief ordered by His Honour Judge David Cooke. The case is a reminder to practitioners to ensure that, where there is uncertainty over the nature of these types of transaction, it will generally be preferable to err on the side of caution when it comes to identifying the respondents. The case is also an illustration that the court will be slow to allow bankrupts to take advantage of their own attempts...