KRF Services (UK) Ltd & Ors, Re

KRF Services (UK) Ltd & Ors, Re

The administration application was validly brought by the sole director under the Model Articles, and Keltbray was properly joined as applicant. The company is cash-flow insolvent, unable to pay debts due to sanctions and frozen accounts. Administration is reasonably likely to achieve a better outcome for creditors than liquidation, provided OFSI grants necessary licences. The appointment of administrators does not breach sanctions regulations, especially with undertakings not to deal with funds absent licence. Immediate order was justified to avoid risk of enforcement and disorderly dissolution.

Parties
Applicant: KRF Services (UK) Ltd; Applicant: Thomas Pascal Pierre Paillardon; Applicant: Keltbray Ltd
Jurisdiction
England and Wales
Judgment Date
12 April 2024
Procedural Posture
Administration Application / Judgment on Appointment of Administrators
Outcome
administration order granted
Legal Topics
Administration Order, Director Decision Making, Sanctions Compliance, Appointment of Administrators, Licensing Regime
Insolvency Company Law Sanctions Administration Order Director Decision Making Sanctions Compliance Appointment of Administrators Licensing Regime

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Parties

KRF Services (UK) Ltd

Applicant

Thomas Pascal Pierre Paillardon

Applicant

Keltbray Ltd

Applicant

Procedural Posture

Administration Application / Judgment on Appointment of Administrators

Legal Issues

  1. 1 Whether Keltbray should be permitted to appear and be joined as applicant
  2. 2 Validity of administration application by sole director
  3. 3 Whether company is unable or likely to become unable to pay debts

Ratio Decidendi

The administration application was validly brought by the sole director under the Model Articles, and Keltbray was properly joined as applicant. The company is cash-flow insolvent, unable to pay debts due to sanctions and frozen accounts. Administration is reasonably likely to achieve a better outcome for creditors than liquidation, provided OFSI grants necessary licences. The appointment of administrators does not breach sanctions regulations, especially with undertakings not to deal with funds absent licence. Immediate order was justified to avoid risk of enforcement and disorderly dissolution.

Court Disposition

administration order granted

Orders

  • Anthony Cork and Stephen Cork appointed as joint administrators of KRF Services (UK) Ltd
  • Joint Administrators to pursue OFSI licence application expeditiously