AABAR Block S.A.R.L. & Anor v Maud

AABAR Block S.A.R.L. & Anor v Maud

The court declined to make an immediate bankruptcy order or dismiss the petition. The petition was not an abuse of process as the petitioners' purposes included legitimate debt recovery and no prejudice to creditors was established. Edgeworth, as joint creditor, could not unilaterally seek a bankruptcy order against Aabar's opposition. The class interest did not support an immediate order, as the majority of creditors by value opposed it and there was some prospect of benefit from the Spanish insolvency process if Mr. Maud retained his status. The petition was to be further considered after updated evidence and directions.

Parties
Petitioner: Aabar Block S.A.R.L.; Petitioner: Edgeworth Capital (Luxembourg) S.A.R.L.; Respondent: Glenn Maud; Opposing Creditor: Global Asset Capital Europe LLC; Opposing Creditor: Navarro Ventures S.A.R.L.
Jurisdiction
England and Wales
Judgment Date
11 June 2018
Procedural Posture
Bankruptcy Petition / Post Appeal, Substantive Hearing on Petition and Class Interest
Outcome
No immediate bankruptcy order; petition neither dismissed nor granted; further directions to be given after updated evidence.
Legal Topics
Abuse of Process, Class Remedy, Joint Creditors, Adjournment of Petition, Pre Emption Rights, Foreign Insolvency Proceedings
Insolvency Bankruptcy Company Law Abuse of Process Class Remedy Joint Creditors Adjournment of Petition Pre Emption Rights +1 more

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Parties

Aabar Block S.A.R.L.

Petitioner

Edgeworth Capital (Luxembourg) S.A.R.L.

Petitioner

Glenn Maud

Respondent

Global Asset Capital Europe LLC

Opposing Creditor

Navarro Ventures S.A.R.L.

Opposing Creditor

Procedural Posture

Bankruptcy Petition / Post Appeal, Substantive Hearing on Petition and Class Interest

Legal Issues

  1. 1 Whether the bankruptcy petition is an abuse of process due to collateral purpose
  2. 2 Whether joint petitioners can seek a bankruptcy order when not unanimous
  3. 3 Whether the making of a bankruptcy order is in the class interest of creditors

Ratio Decidendi

The court declined to make an immediate bankruptcy order or dismiss the petition. The petition was not an abuse of process as the petitioners' purposes included legitimate debt recovery and no prejudice to creditors was established. Edgeworth, as joint creditor, could not unilaterally seek a bankruptcy order against Aabar's opposition. The class interest did not support an immediate order, as the majority of creditors by value opposed it and there was some prospect of benefit from the Spanish insolvency process if Mr. Maud retained his status. The petition was to be further considered after updated evidence and directions.

Court Disposition

No immediate bankruptcy order; petition neither dismissed nor granted; further directions to be given after updated evidence.

Orders

  • Parties to address the court on appropriate directions for future conduct of the petition.
  • Provision for further evidence to be filed, particularly regarding developments in the Spanish insolvency proceedings and the relationship between Edgeworth and Aabar.