Brockstone Ltd v Force India Formula One Team Ltd

Brockstone Ltd v Force India Formula One Team Ltd

The Company is clearly insolvent, with substantial undisputed debts and frozen bank accounts. The evidence shows that administration is reasonably likely to achieve a better result for creditors than winding-up, and the interests of creditors require immediate appointment of administrators. The possibility of imminent funds is speculative and does not justify delay. The court exercises its discretion to make the administration order immediately.

Parties
Applicant: Brockstone Limited; Respondent: Force India Formula One Team Limited; Interested Party: BWT Aktiengesellschaft; Interested Party: Formula One World Championship Limited
Jurisdiction
England and Wales
Judgment Date
27 July 2018
Procedural Posture
Insolvency/administration Application / Judgment on Creditor's Application for Administration Order
Outcome
Administration order granted
Legal Topics
Administration Order, Insolvency Proceedings, Creditors' Rights, Appointment of Administrators
Insolvency Law Company Law Administration Order Insolvency Proceedings Creditors' Rights Appointment of Administrators

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Parties

Brockstone Limited

Applicant

Force India Formula One Team Limited

Respondent

BWT Aktiengesellschaft

Interested Party

Formula One World Championship Limited

Interested Party

Procedural Posture

Insolvency/administration Application / Judgment on Creditor's Application for Administration Order

Legal Issues

  1. 1 Whether the court should make an administration order over Force India Formula One Team Limited under the Insolvency Act 1986
  2. 2 Whether the appointment of administrators is reasonably likely to achieve the purpose of administration
  3. 3 Whether the interests of creditors are best served by administration rather than alternative courses

Ratio Decidendi

The Company is clearly insolvent, with substantial undisputed debts and frozen bank accounts. The evidence shows that administration is reasonably likely to achieve a better result for creditors than winding-up, and the interests of creditors require immediate appointment of administrators. The possibility of imminent funds is speculative and does not justify delay. The court exercises its discretion to make the administration order immediately.

Court Disposition

Administration order granted

Orders

  • Joint administrators Geoffrey Rowley and Jason Baker of FRP Advisory LLP appointed over Force India Formula One Team Limited as of 8:06 p.m. on 27 July 2018