Source: All England Reporter
Publisher Citation: [2017] All ER (D) 94 (Jun)
Neutral Citation: [2017] EWHC 1429 (Ch)
Court: Chancery Division, Companies Court
Judge:

Snowden J

Representation William Trower QC and Alex Riddiford (instructed by Herbert Smith Freehills LLP) for the administrators.
Judgment Dates: 16 June 2017

Catchwords

Insolvency - Administration - Administrators of companies applying for directions in relation to potential expense claims - Administrators seeking orders to inform potential claimants that any expense claims, not yet been made, should be notified and seeking authorisation of distribution of assets - Whether court having jurisdiction to give directions sought - Whether orders sought should be made - Insolvency Rules 1986, , .

The Case

Insolvency Administration. The Companies Court granted the administrators of 18 Nortel group companies orders giving directions to the administrators to inform potential claimants that any expense claims, which had not yet been made, had to be notified to the administratorson a demand form on, or before, a specified date. The court also granted an order authorising the administrators to distribute the assets of two of the companies in the group to their unsecured creditors directly, rather than by promoting a company voluntary arrangement for that purpose. The court held that it had jurisdiction to make the orders sought and that they properly balanced the need to protect the interests of persons who might have expense claims, which had yet to be asserted, against the need to minimise any further delay to the conclusion of the administrations, and to facilitate the distribution of the companies' assets to their unsecured creditors.

Practice Areas

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