Source: All England Reporter
Publisher Citation: [2015] All ER (D) 139 (May)
Neutral Citation: [2015] EWCA Civ 485
Court: Court of Appeal, Civil Division

Lord Justice Moore-Bick, VP, Lord Justice Lewison and Lord Justice Briggs

Representation William Trower QC, Daniel Bayfield, Stephen Robins and Alexander Riddiford (instructed by Linklaters LLP) for the LBIE joint administrators.
  David Wolfson QC and Nehali Shah (instructed by DLA Piper UK LLP) for the LBL joint administrators.
  Richard Snowden QC, Louise Hutton and Rosanna Foskett (instructed by Dentons UKMEA LLP) for the LBHI2 joint administrators.
  Barry Isaacs QC (instructed by Weil, Gotshal & Manges) for Lehman Brothers Holdings Inc.
  Robin Dicker QC, Richard Fisher and Charlotte Cooke (instructed by Freshfields Bruckhaus Deringer LLP) for CVI GVF (Lux) Master Sarl.
Judgment Dates: 14 May 2015


Company - Administration - Assets available for creditors - Ranking of claims - Proceedings arising in course of administration of Lehman Brothers - Unexpected surplus of assets existing after payment of unsubordinated proved debts - Shareholder also being subordinated debt-holder and submitting claim in company's administration - Administrators commencing proceedings, seeking decision of court on number of issues - Judge granting ten declarations - Whether subordinated debt-holder's claim ranking before or after claims for statutory interest on proved debts - Whether subordinated debt-holder's claim ranking before or after claims of foreign currency creditors - Whether right to statutory interest accruing during administration lost if company going into liquidation - Whether shareholders' contribution obligation including payment of statutory interest and non-provable liabilities - Whether liability for future calls could be subject of proof in administration or liquidation of corporate contributory - Whether contributory rule preventing contributory from recovering anything in liquidation until fully discharging liability as contributory extending to administration - , - Insolvency Rules 1986, , , .

The Case

Company Administration. In the course of proceedings concerning the administration of companies connected to the Lehman Brothers group, the Companies Court made a number of rulings to determine the claims that might be made against a surplus of assets before any return to the creditors. The Court of Appeal, Civil Division, in allowing the appeal against two of those rulings and upholding the remainder, considered, inter alia, the ranking in the administration of unsubordinated debt, whether currency conversion claims were non-provable liabilities, whether accrued rights to statutory interest under r 2.88(7) of the Insolvency Rules 1986, survived the transition from administration to liquidation and whether the obligation of contributories, under of the Insolvency Act 1986, extended to statutory interest and non-provable liabilities.

Practice Areas

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