Golden Key Ltd, Re Insolvency Act 1986

Golden Key Ltd, Re Insolvency Act 1986

Receivers must apply funds received between 21 August and 23 September 2007 in accordance with payment priorities applicable before 23 September 2007, paying CP maturing before that date in priority to other CP; service of Mandatory Acceleration Notice did not postpone maturity dates of CP that matured before 23 September 2007.

Parties
Company: Golden Key Ltd.; Receivers: Mr Mark Keith Adams, Mr Neville Barry Kahn, Mr Nicholas James Dargan; Noteholder: Party A; Noteholder: Party B; Noteholder: Party C; Noteholder: Party D; Security Trustee: The Bank of New York Mellon; Liquidity Facility Provider: Barclays Bank Plc
Jurisdiction
England and Wales
Judgment Date
04 February 2009
Procedural Posture
Originating Application / Judgment
Outcome
Court grants directions; Receivers to pay out funds in accordance with pre-23 September 2007 priorities, pay maturing CP in priority, no postponement of maturity dates.
Legal Topics
Priority of Payments, Structured Investment Vehicles, Commercial Paper, Acceleration, Defeasance, Receivership
Insolvency Trusts Contract Priority of Payments Structured Investment Vehicles Commercial Paper Acceleration Defeasance +1 more

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Parties

Golden Key Ltd.

Company

Mr Mark Keith Adams, Mr Neville Barry Kahn, Mr Nicholas James Dargan

Receivers

Party A

Noteholder

Party B

Noteholder

Party C

Noteholder

Party D

Noteholder

The Bank of New York Mellon

Security Trustee

Barclays Bank Plc

Liquidity Facility Provider

Procedural Posture

Originating Application / Judgment

Legal Issues

  1. 1 Whether funds received between 21 August and 23 September 2007 should be applied under Section 7.3 or Section 7.4 of the CTSA
  2. 2 Whether maturing CP in the intermediate period should be paid in date order and priority
  3. 3 Whether service of Mandatory Acceleration Notice postponed maturity dates of CP

Ratio Decidendi

Receivers must apply funds received between 21 August and 23 September 2007 in accordance with payment priorities applicable before 23 September 2007, paying CP maturing before that date in priority to other CP; service of Mandatory Acceleration Notice did not postpone maturity dates of CP that matured before 23 September 2007.

Court Disposition

Court grants directions; Receivers to pay out funds in accordance with pre-23 September 2007 priorities, pay maturing CP in priority, no postponement of maturity dates.

Orders

  • Receivers to apply funds received between 21 August and 23 September 2007 under Section 7.3 of CTSA.
  • Receivers to redeem CP maturing before 23 September 2007 in priority to other CP.