Ace Telecom Ltd, Re [2007] EWHC 2272 (Ch) (11 July 2007)

Ace Telecom Ltd, Re [2007] EWHC 2272 (Ch) (11 July 2007)

There is no credible evidence that the objectives of administration can be achieved, as the VAT refunds are unlikely to be recovered and trading will not generate sufficient income for creditors; therefore, administration orders are refused.

Citation
[2007] EWHC 2272 (Ch)
Parties
Applicant Company: Ace Telecom Limited; Applicant Company: N2J Limited; Petitioning Creditor: Hassan Khan & Co
Jurisdiction
England and Wales
Judgment Date
11 July 2007
Procedural Posture
Application for Administration Order / Judgment on Application
Outcome
Applications for administration orders dismissed
Legal Topics
Administration Orders, Winding Up Petitions, Creditor Interests, VAT Fraud Allegations
Insolvency Company Law Administration Orders Winding Up Petitions Creditor Interests VAT Fraud Allegations

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Parties

Ace Telecom Limited

Applicant Company

N2J Limited

Applicant Company

Hassan Khan & Co

Petitioning Creditor

Procedural Posture

Application for Administration Order / Judgment on Application

Legal Issues

  1. 1 Whether administration order should be granted for Ace Telecom Limited and N2J Limited
  2. 2 Whether administration would achieve a better result for creditors than liquidation
  3. 3 Whether there is a real prospect of recovering VAT refunds

Ratio Decidendi

There is no credible evidence that the objectives of administration can be achieved, as the VAT refunds are unlikely to be recovered and trading will not generate sufficient income for creditors; therefore, administration orders are refused.

Court Disposition

Applications for administration orders dismissed

Orders

  • Applications for administration orders in respect of Ace Telecom Limited and N2J Limited are dismissed.