Diamond Hangar Ltd & Anor v Abacus Lighting Ltd & Anor

Diamond Hangar Ltd & Anor v Abacus Lighting Ltd & Anor

Diamond Hangar Limited has demonstrated, with the financial support of Mr Eze, that it can pay its debts as they fall due; the application for rescission is supported by all creditors except MAG, whose opposition is commercially motivated; the court is satisfied that the application is not misleading, all material facts are before the court, and the company has taken steps to address past management failings. The circumstances are exceptional and materially different from those at the time of the winding up order. The winding up order is rescinded, subject to the appointment of an additional independent UK-based director within three months.

Parties
Applicant: Diamond Hangar Limited; Applicant: Michael Patrick Foley; Respondent: Abacus Lighting Limited; Respondent: Andrew Villis; Interested Party: Stansted Airport Limited; Interested Party: The Manchester Airport Group plc; Other: Official Receiver
Jurisdiction
England and Wales
Judgment Date
06 February 2019
Procedural Posture
Insolvency (winding Up/rescission) / Application for Rescission of Winding Up Order
Outcome
Winding up order rescinded; petition dismissed
Legal Topics
Rescission of Winding Up Order, Company Solvency, Director Duties, Creditors' Interests, Court Discretion in Insolvency
Insolvency Law Company Law Rescission of Winding Up Order Company Solvency Director Duties Creditors' Interests Court Discretion in Insolvency

Case Brief

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Parties

Diamond Hangar Limited

Applicant

Michael Patrick Foley

Applicant

Abacus Lighting Limited

Respondent

Andrew Villis

Respondent

Stansted Airport Limited

Interested Party

The Manchester Airport Group plc

Interested Party

Official Receiver

Other

Procedural Posture

Insolvency (winding Up/rescission) / Application for Rescission of Winding Up Order

Legal Issues

  1. 1 Whether the winding up order against Diamond Hangar Limited should be rescinded under Rule 12.59 of the Insolvency Rules
  2. 2 Whether Diamond Hangar Limited is able to pay its debts as they fall due
  3. 3 Whether the application for rescission is supported by all material facts and is not misleading

Ratio Decidendi

Diamond Hangar Limited has demonstrated, with the financial support of Mr Eze, that it can pay its debts as they fall due; the application for rescission is supported by all creditors except MAG, whose opposition is commercially motivated; the court is satisfied that the application is not misleading, all material facts are before the court, and the company has taken steps to address past management failings. The circumstances are exceptional and materially different from those at the time of the winding up order. The winding up order is rescinded, subject to the appointment of an additional independent UK-based director within three months.

Court Disposition

Winding up order rescinded; petition dismissed

Orders

  • The winding up order made on 4 December 2018 is rescinded.
  • The winding up petition is dismissed.