Re Halliwells Llp & Ors (Rev 1)

Re Halliwells Llp & Ors (Rev 1)

The evidence establishes that Halliwells LLP is insolvent and cannot be rescued as a going concern. The proposed administration and pre-packaged sales are the only viable means to maximise returns for creditors. The arrangements for PPL repayments, though preferences, are necessary to secure the sales and do not unnecessarily harm the interests of creditors as a whole. The process is SIP 16 compliant and not an abuse of procedure.

Parties
Applicant: Halliwells LLP; Applicant: Shay Bannon; Applicant: Dermot Power
Jurisdiction
England and Wales
Judgment Date
30 July 2010
Procedural Posture
Insolvency/administration Application / Judgment on Application for Administration Order and Approval of Pre Packaged Sales
Outcome
Application granted; administration order made; administrators appointed; approval of four pre-packaged sales granted.
Legal Topics
Administration Order, Pre Packaged Sales, Secured Creditors, Preferential Creditors, Unsecured Creditors, Partnership Practice Loans (ppls)
Insolvency Law Company Law Administration Order Pre Packaged Sales Secured Creditors Preferential Creditors Unsecured Creditors Partnership Practice Loans (ppls)

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Parties

Halliwells LLP

Applicant

Shay Bannon

Applicant

Dermot Power

Applicant

Procedural Posture

Insolvency/administration Application / Judgment on Application for Administration Order and Approval of Pre Packaged Sales

Legal Issues

  1. 1 Whether Halliwells LLP should be placed into administration under the Insolvency Act 1986
  2. 2 Whether the court should approve the appointment of the proposed administrators
  3. 3 Whether the court should approve four pre-packaged sales of parts of Halliwells' business

Ratio Decidendi

The evidence establishes that Halliwells LLP is insolvent and cannot be rescued as a going concern. The proposed administration and pre-packaged sales are the only viable means to maximise returns for creditors. The arrangements for PPL repayments, though preferences, are necessary to secure the sales and do not unnecessarily harm the interests of creditors as a whole. The process is SIP 16 compliant and not an abuse of procedure.

Court Disposition

Application granted; administration order made; administrators appointed; approval of four pre-packaged sales granted.

Orders

  • Halliwells LLP placed into administration.
  • Shay Bannon and Dermot Power appointed as administrators.