Christophorus 3 Ltd & Anor, Re

Christophorus 3 Ltd & Anor, Re

The Company remained an Obligor for the purposes of clause 14.2 of the Intercreditor Agreement after ceasing to be a subsidiary of Handels, and the proposed sale by the administrators is implemented under a court approved process. The Security Agent has power to grant the necessary releases and request the Company to enter into the SPA.

Parties
Applicant/company: Christophorus 3 Limited; Proposed Administrators: Peter Spratt and Russell Downs (Proposed Administrators); Security Agent/respondent: Morgan Stanley Bank International Limited (MSBIL)
Jurisdiction
England and Wales
Judgment Date
15 April 2014
Procedural Posture
Insolvency/administration Application / Judgment on Urgent Application for Administration Order and Related Relief
Outcome
Relief granted; administration order made; administrators authorised to enter into SPA; Security Agent authorised to grant releases.
Legal Topics
Administration Order, Pre Pack Sale, Intercreditor Agreement, Release of Liabilities, Court Approval of Restructuring
Insolvency Law Company Law Administration Order Pre Pack Sale Intercreditor Agreement Release of Liabilities Court Approval of Restructuring

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Parties

Christophorus 3 Limited

Applicant/company

Peter Spratt and Russell Downs (Proposed Administrators)

Proposed Administrators

Morgan Stanley Bank International Limited (MSBIL)

Security Agent/respondent

Procedural Posture

Insolvency/administration Application / Judgment on Urgent Application for Administration Order and Related Relief

Legal Issues

  1. 1 Whether the Company remained an Obligor under the Intercreditor Agreement after ceasing to be a subsidiary of Handels
  2. 2 Whether the proposed sale is implemented under a court approved process within the meaning of clause 14.2 of the Intercreditor Agreement
  3. 3 Whether the Security Agent has power to grant the necessary releases under clause 14.2

Ratio Decidendi

The Company remained an Obligor for the purposes of clause 14.2 of the Intercreditor Agreement after ceasing to be a subsidiary of Handels, and the proposed sale by the administrators is implemented under a court approved process. The Security Agent has power to grant the necessary releases and request the Company to enter into the SPA.

Court Disposition

Relief granted; administration order made; administrators authorised to enter into SPA; Security Agent authorised to grant releases.

Orders

  • Administration order in respect of Christophorus 3 Limited pursuant to paragraph 12(1)(b) of Schedule B1 to the Insolvency Act 1986.
  • Appointment of Peter Spratt and Russell Downs as administrators.