Eurodis Electron Plc & Ors, Re The Insolvency Act 1986 [2011] EWHC 1025 (Ch) (19 April 2011)

Eurodis Electron Plc & Ors, Re The Insolvency Act 1986 [2011] EWHC 1025 (Ch) (19 April 2011)

The English court cannot disregard the dissolution of the company under Belgian law, as the orders of the Belgian court must be respected until set aside. However, under sections 221 and 225 of the Insolvency Act 1986, the court can wind up a dissolved foreign company and appoint the administrators as liquidators, allowing them to complete the distribution of assets and pay their expenses as liquidation expenses.

Citation
[2011] EWHC 1025 (Ch)
Parties
Applicant/administrator: Nicholas Guy Edwards; Applicant/administrator: Nicholas James Dargan; Applicant/administrator: Neville Barry Kahn; Company in Administration: Eurodis Texim Electronics SA
Jurisdiction
England and Wales
Judgment Date
19 April 2011
Procedural Posture
Insolvency Application (administration/winding Up) / Judgment on Application for Directions and Winding Up Order
Outcome
Winding up order granted; administrators appointed as liquidators; administrators' expenses to be paid as liquidation expenses.
Legal Topics
Cross Border Insolvency, Recognition of Foreign Insolvency Proceedings, Winding Up of Dissolved Foreign Companies, Administration of Insolvent Companies
Insolvency Law Private International Law Company Law Cross Border Insolvency Recognition of Foreign Insolvency Proceedings Winding Up of Dissolved Foreign Companies Administration of Insolvent Companies

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Parties

Nicholas Guy Edwards

Applicant/administrator

Nicholas James Dargan

Applicant/administrator

Neville Barry Kahn

Applicant/administrator

Eurodis Texim Electronics SA

Company in Administration

Procedural Posture

Insolvency Application (administration/winding Up) / Judgment on Application for Directions and Winding Up Order

Legal Issues

  1. 1 Whether English administration can continue after dissolution of company in country of incorporation
  2. 2 Whether English court should disregard dissolution under foreign law due to primacy of main proceedings under the Insolvency Regulation
  3. 3 Whether English court can wind up a dissolved foreign company and appoint administrators as liquidators

Ratio Decidendi

The English court cannot disregard the dissolution of the company under Belgian law, as the orders of the Belgian court must be respected until set aside. However, under sections 221 and 225 of the Insolvency Act 1986, the court can wind up a dissolved foreign company and appoint the administrators as liquidators, allowing them to complete the distribution of assets and pay their expenses as liquidation expenses.

Court Disposition

Winding up order granted; administrators appointed as liquidators; administrators' expenses to be paid as liquidation expenses.

Orders

  • Winding up order made in respect of Eurodis Texim Electronics SA under section 221(5)(a) of the Insolvency Act 1986.
  • Administrators appointed as liquidators of the company.