In the Matter of Cargologicair Limited

In the Matter of Cargologicair Limited

The company is cash flow insolvent due to sanctions and imminent bank account closure. Administration is reasonably likely to achieve one or more statutory purposes, including a better result for creditors and preservation of valuable licences. The court exercises its discretion to make the administration order and appoint the proposed administrators, with immediate effect.

Parties
Applicant: Konstantin Vekshin; Company: CargoLogicAir Limited
Jurisdiction
England and Wales
Judgment Date
16 November 2022
Procedural Posture
Insolvency/administration Application / Judgment on Application for Administration Order
Outcome
Administration order granted; proposed administrators appointed; ancillary order regarding Insolvency Services Account granted; order to be sealed immediately.
Legal Topics
Administration Order, Sanctions Compliance, Asset Freezing, Director's Duties, Bank Account Closure, Air Operator Certificate, Preferential Creditors
Insolvency Sanctions Company Law Administration Order Sanctions Compliance Asset Freezing Director's Duties Bank Account Closure +2 more

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Parties

Konstantin Vekshin

Applicant

CargoLogicAir Limited

Company

Procedural Posture

Insolvency/administration Application / Judgment on Application for Administration Order

Legal Issues

  1. 1 Whether the company is unable to pay its debts as they fall due
  2. 2 Whether an administration order is reasonably likely to achieve one of the statutory purposes under the Insolvency Act 1986
  3. 3 Whether the court should exercise its discretion to make an administration order in light of UK sanctions

Ratio Decidendi

The company is cash flow insolvent due to sanctions and imminent bank account closure. Administration is reasonably likely to achieve one or more statutory purposes, including a better result for creditors and preservation of valuable licences. The court exercises its discretion to make the administration order and appoint the proposed administrators, with immediate effect.

Court Disposition

Administration order granted; proposed administrators appointed; ancillary order regarding Insolvency Services Account granted; order to be sealed immediately.

Orders

  • Company placed into administration
  • David Buchler and Joanne Milner appointed as joint administrators