BTI 2014 LLC & Anor v Finbarr O'Connell & Ors

BTI 2014 LLC & Anor v Finbarr O'Connell & Ors

The administrators have an unmanageable conflict of interest regarding claims against the New Directors, and the majority creditors have legitimate grounds for loss of confidence. The conflict cannot be adequately managed by appointing conflict administrators, as it would leave the current administrators with no meaningful role. The applicants are properly regarded as creditors, and there is no adverse interest barring their nominated administrators. Removal is justified and ordered.

Parties
Applicant: BTI 2014 LLC; Applicant: BAT Industries PLC; Respondent: Finbarr O'Connell; Respondent: Colin Hardman; Respondent: Windward Prospects Limited (in administration)
Jurisdiction
England and Wales
Judgment Date
08 August 2025
Procedural Posture
Cross Applications in Administration / Judgment on Removal and Appointment of Administrators
Outcome
Current administrators removed; applicants' nominees to be appointed as administrators.
Legal Topics
Removal of Administrators, Conflict of Interest, Creditor Status, Administration Extension, Appointment of Conflict Administrators
Insolvency Company Law Removal of Administrators Conflict of Interest Creditor Status Administration Extension Appointment of Conflict Administrators

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Parties

BTI 2014 LLC

Applicant

BAT Industries PLC

Applicant

Finbarr O'Connell

Respondent

Colin Hardman

Respondent

Windward Prospects Limited (in administration)

Respondent

Procedural Posture

Cross Applications in Administration / Judgment on Removal and Appointment of Administrators

Legal Issues

  1. 1 Whether the applicants are creditors of the company
  2. 2 Whether the administrators have a conflict of interest requiring removal
  3. 3 Whether the conflict can be managed by appointing conflict administrators

Ratio Decidendi

The administrators have an unmanageable conflict of interest regarding claims against the New Directors, and the majority creditors have legitimate grounds for loss of confidence. The conflict cannot be adequately managed by appointing conflict administrators, as it would leave the current administrators with no meaningful role. The applicants are properly regarded as creditors, and there is no adverse interest barring their nominated administrators. Removal is justified and ordered.

Court Disposition

Current administrators removed; applicants' nominees to be appointed as administrators.

Orders

  • Order for removal of Finbarr O'Connell and Colin Hardman as administrators.
  • Order for appointment of new administrators nominated by BTI 2014 LLC and BAT Industries PLC.