Colt Telecom Group Plc, Re [2002] EWHC 2815 (Ch) (20 December 2002)

Colt Telecom Group Plc, Re [2002] EWHC 2815 (Ch) (20 December 2002)

The administration petition is barred by the no-action clause in the Indenture under New York law, which applies to this claim; English public policy does not override the clause; insolvency is not proved on either cash-flow or balance sheet basis; the court is not satisfied that Colt is or is likely to become unable to pay its debts.

Citation
[2002] EWHC 2815 (Ch)
Parties
Petitioner: Highberry Ltd and Highberry LLC; Respondent: Colt Telecom Group plc
Jurisdiction
England and Wales
Judgment Date
20 December 2002
Procedural Posture
Administration Petition Under Insolvency Act 1986 / Judgment on Contested Petition
Outcome
petition dismissed
Legal Topics
Administration Order, No Action Clause, Public Policy, Insolvency Tests, Bondholder Rights
Insolvency Company Law Contract Law Administration Order No Action Clause Public Policy Insolvency Tests Bondholder Rights

Case Brief

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Parties

Highberry Ltd and Highberry LLC

Petitioner

Colt Telecom Group plc

Respondent

Procedural Posture

Administration Petition Under Insolvency Act 1986 / Judgment on Contested Petition

Legal Issues

  1. 1 Threshold for proving likely insolvency under s.8(1) Insolvency Act 1986
  2. 2 Effect of no-action clause in Indenture under New York law
  3. 3 Whether English public policy overrides contractual fetters on administration petitions

Ratio Decidendi

The administration petition is barred by the no-action clause in the Indenture under New York law, which applies to this claim; English public policy does not override the clause; insolvency is not proved on either cash-flow or balance sheet basis; the court is not satisfied that Colt is or is likely to become unable to pay its debts.

Court Disposition

petition dismissed

Orders

  • administration petition dismissed
  • no administration order made