Collins & Aikman Europe SA Collins & Ors, Re Insolvency Act 1986
The Court has jurisdiction under Schedule B1 of the Insolvency Act 1986 and inherent powers to direct Joint Administrators to honour assurances given to creditors, allowing distributions according to local law priorities, as such conduct assists the purpose of administration and is not precluded by statutory provisions.
- Parties
- Applicant: Collins & Aikman Europe SA; Applicant: Collins & Aikman Automotive Systems SL; Applicant: Collins & Aikman Automotive Holding GmbH; Applicant: Collins & Aikman Systems GmbH; Applicant: Collins & Aikman Systems AB; Applicant: Collins & Aikman Automotive Company Italia SRL; Applicant: Collins & Aikman Automotive Trim Bvba; Applicant: Collins & Aikman Automotive Holdings BV; Applicant: Collins & Aikman Automotive Trim BV; Applicant: Collins & Aikman Automotive SRO; Officer: Joint Administrators (Messrs S. J. Appell, A. P. Beveridge, G. P. Squires of Kroll)
- Jurisdiction
- England and Wales
- Judgment Date
- 09 June 2006
- Procedural Posture
- Insolvency Administration / Application for Directions and Approval of Distributions
- Outcome
- Application granted for all applicant companies except Collins & Aikman Automotive Holding GmbH, for which the hearing is adjourned.
- Legal Topics
- Administration Orders, Distribution to Creditors, Court Directions, Application of Local Law, Powers of Administrators
Case Brief
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Parties
Collins & Aikman Europe SA
Applicant
Collins & Aikman Automotive Systems SL
Applicant
Collins & Aikman Automotive Holding GmbH
Applicant
Collins & Aikman Systems GmbH
Applicant
Collins & Aikman Systems AB
Applicant
Collins & Aikman Automotive Company Italia SRL
Applicant
Collins & Aikman Automotive Trim Bvba
Applicant
Collins & Aikman Automotive Holdings BV
Applicant
Collins & Aikman Automotive Trim BV
Applicant
Collins & Aikman Automotive SRO
Applicant
Joint Administrators (Messrs S. J. Appell, A. P. Beveridge, G. P. Squires of Kroll)
Officer
Procedural Posture
Insolvency Administration / Application for Directions and Approval of Distributions
Legal Issues
- 1 Whether English-appointed Joint Administrators can honour assurances to apply local law provisions in distributions to creditors of European companies.
- 2 Whether the Court has jurisdiction and discretion to direct administrators to implement such assurances, departing from English law.
Ratio Decidendi
The Court has jurisdiction under Schedule B1 of the Insolvency Act 1986 and inherent powers to direct Joint Administrators to honour assurances given to creditors, allowing distributions according to local law priorities, as such conduct assists the purpose of administration and is not precluded by statutory provisions.
Court Disposition
Application granted for all applicant companies except Collins & Aikman Automotive Holding GmbH, for which the hearing is adjourned.
Orders
- Joint Administrators are directed to implement assurances given to creditors, making distributions according to local law priorities.
- Certificate under Articles 54 and 58 of Council Regulation (EC) No. 44/2001 to be issued referring to this judgment.
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