Cargologicair Ltd, Re [2022] EWHC 3316 (Ch) (16 November 2022)

Cargologicair Ltd, Re [2022] EWHC 3316 (Ch) (16 November 2022)

The company is cash flow insolvent due to sanctions and imminent closure of its only bank account, cannot pay its debts, and administration is reasonably likely to achieve one or more statutory purposes. The court exercises its discretion to make the administration order and permit use of the Insolvency Services Account.

Citation
[2022] EWHC 3316 (Ch)
Parties
Applicant: Konstantin Vekshin; Company: CargoLogicAir Limited
Jurisdiction
England and Wales
Judgment Date
16 November 2022
Procedural Posture
Administration Application / Judgment on Application for Administration Order
Outcome
Administration order granted; ancillary order permitting use of Insolvency Services Account granted.
Legal Topics
Administration Order, Sanctions Compliance, Asset Freezing, Director's Application, Insolvency Services Account
Insolvency Sanctions Company Law Administration Order Sanctions Compliance Asset Freezing Director's Application Insolvency Services Account

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Parties

Konstantin Vekshin

Applicant

CargoLogicAir Limited

Company

Procedural Posture

Administration Application / Judgment on Application for Administration Order

Legal Issues

  1. 1 Whether CargoLogicAir Limited should be placed into administration under the Insolvency Act 1986
  2. 2 Whether the statutory purposes of administration are reasonably likely to be achieved
  3. 3 Whether the administrators should be permitted to use the Insolvency Services Account given sanctions

Ratio Decidendi

The company is cash flow insolvent due to sanctions and imminent closure of its only bank account, cannot pay its debts, and administration is reasonably likely to achieve one or more statutory purposes. The court exercises its discretion to make the administration order and permit use of the Insolvency Services Account.

Court Disposition

Administration order granted; ancillary order permitting use of Insolvency Services Account granted.

Orders

  • CargoLogicAir Limited placed into administration.
  • David Buchler and Joanne Milner appointed as joint administrators.