Bloom & Ors v Harms Offshore AHT "Taurus" GmbH & Co KG & Anor

Bloom & Ors v Harms Offshore AHT "Taurus" GmbH & Co KG & Anor

It would be unconscionable for the German companies to rely on the New York attachment orders to obtain security over monies paid by the administrators in satisfaction of post-administration debts, where the administrators had not been informed of the existence of the attachment orders, as this would seriously prejudice the functions of the administrators under the English administration order.

Parties
Appellants: Bloom & Ors; Respondents: Harms Offshore AHT “Taurus” GmbH & Co KG & Anr
Jurisdiction
England and Wales
Judgment Date
20 May 2009
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division, Companies Court)
Outcome
Appeal dismissed
Legal Topics
Administration Orders, Maritime Attachment, Jurisdiction, Company Voluntary Arrangement
Insolvency Company Law Conflict of Laws Administration Orders Maritime Attachment Jurisdiction Company Voluntary Arrangement

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Parties

Bloom & Ors

Appellants

Harms Offshore AHT “Taurus” GmbH & Co KG & Anr

Respondents

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division, Companies Court)

Legal Issues

  1. 1 Whether the German companies should be directed to release attachment orders obtained in New York over assets of a company in English administration
  2. 2 Whether reliance on New York attachment orders prejudices the administration and is unconscionable

Ratio Decidendi

It would be unconscionable for the German companies to rely on the New York attachment orders to obtain security over monies paid by the administrators in satisfaction of post-administration debts, where the administrators had not been informed of the existence of the attachment orders, as this would seriously prejudice the functions of the administrators under the English administration order.

Court Disposition

Appeal dismissed

Orders

  • Appellants restrained from taking further steps in the New York attachment proceedings.
  • Appellants to use best endeavours to procure the release of the ex parte orders of maritime attachment and garnishment made by the US District Court against the company's assets.