Carter v Bailey & Anor (Sturgeon Central Asia Balanced Fund Ltd) [2020] EWHC 123 (Ch) (27 January 2020)

Carter v Bailey & Anor (Sturgeon Central Asia Balanced Fund Ltd) [2020] EWHC 123 (Ch) (27 January 2020)

The recognition order must be terminated because the winding up of Sturgeon Central Asia Balanced Fund Ltd in Bermuda is not a 'foreign proceeding' within the meaning of Article 2(i) of the Model Law/CBIR, as it is a solvent liquidation and not for the purpose of resolving insolvency or severe financial distress....

Source-derived case information.

Citation
[2020] EWHC 123 (Ch)
Parties
Applicant: Michael Carter; Respondents: Roy Bailey and Keiran Hutchison (as foreign representatives of Sturgeon Central Asia Balanced Fund Ltd)
Jurisdiction
England and Wales
Judgment Date
27 January 2020
Procedural Posture
Review Application Under Cross Border Insolvency Regulations 2006 (cbir) / High Court Review of Ex Parte Recognition Order
Outcome
Recognition order terminated
Legal Topics
Recognition of Foreign Insolvency Proceedings, Interpretation of UNCITRAL Model Law, Standing to Challenge Recognition, Solvent Liquidation
Insolvency Law Cross Border Insolvency Recognition of Foreign Insolvency Proceedings Interpretation of UNCITRAL Model Law Standing to Challenge Recognition Solvent Liquidation

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Parties

Michael Carter

Applicant

Roy Bailey and Keiran Hutchison (as foreign representatives of Sturgeon Central Asia Balanced Fund Ltd)

Respondents

Procedural Posture

Review Application Under Cross Border Insolvency Regulations 2006 (cbir) / High Court Review of Ex Parte Recognition Order

Legal Issues

  1. 1 Whether the winding up of a solvent company is a 'foreign proceeding' under Article 2(i) of the Model Law as enacted by the CBIR and thus capable of recognition
  2. 2 Whether the applicant (former director) has standing as a 'person affected by recognition' to seek review/termination of the recognition order

Ratio Decidendi

The recognition order must be terminated because the winding up of Sturgeon Central Asia Balanced Fund Ltd in Bermuda is not a 'foreign proceeding' within the meaning of Article 2(i) of the Model Law/CBIR, as it is a solvent liquidation and not for the purpose of resolving insolvency or severe financial distress. The Model Law and CBIR do not extend to solvent liquidations. The applicant has standing as a person affected by recognition.

Court Disposition

Recognition order terminated

Orders

  • The recognition order made on 17 May 2019 is terminated.
  • No order as to costs.