Legal News

The pragmatic approach to insolvency (Re Lehman Brothers Europe Ltd (in administration))

Published on: 15 August 2017
Published by: LexisPSL
  • The pragmatic approach to insolvency (Re Lehman Brothers Europe Ltd (in administration))
  • Original news
  • What approach did the administrators take towards distributions to members?
  • The key issue
  • The proposed solution
  • The decision
  • Should a director of a company in administration be permitted to make a distribution to members?
  • Did the proposal have to be consistent with and further the purposes of the administration?
  • Were the administrators restricted by the proposals which they had published at the outset?
  • Was there a statutory trust over assets in a distributing administration and if so did that affect the proposal?
  • More...

Article summary

Restructuring & Insolvency analysis: Joe Bannister, John Tillman and Margaret Kemp of Hogan Lovells examine the Lehman Brothers Europe Limited (LBEL) case and suggest the decision illustrates the courts are willing to adopt a pragmatic approach in assisting insolvency practitioners who need to act quickly in circumstances where their proposed actions are not expressly addressed in the Insolvency Act 1986 (IA 1986). or take a trial to read the full analysis.

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