Paragon Offshore Plc, Re [2021] EWHC 2275 (Ch) (13 August 2021)

Paragon Offshore Plc, Re [2021] EWHC 2275 (Ch) (13 August 2021)

The Revised Rule 14.11 application was dismissed because Paragon Parent was personally liable under the finance documents, the claims were not non-recourse, the Loan Note Instrument did not represent deficiency claims, and no proof of debt had been submitted or admitted in respect of the Loan Note Instrument, making Rule 14.11 inapplicable. The application had no real prospect of success and was suitable for summary judgment.

Citation
[2021] EWHC 2275 (Ch)
Parties
Applicant: Michael R. Hammersley; First Respondent (joint Liquidator): Nicholas Guy Edwards; Second Respondent (joint Liquidator): David Philip Soden; Third Respondent: Paragon Offshore Limited
Jurisdiction
England and Wales
Judgment Date
13 August 2021
Procedural Posture
Insolvency Application / Summary Judgment on Application to Strike Out/dismiss Revised Rule 14.11 Application
Outcome
Application dismissed; summary judgment granted for the Joint Liquidators.
Legal Topics
Proof of Debt, Summary Judgment, Personal Liability of Guarantor, Non Recourse Claims, US Bankruptcy Code Section 1111(b), Loan Note Instrument, Intercompany Liabilities
Insolvency Company Law Proof of Debt Summary Judgment Personal Liability of Guarantor Non Recourse Claims US Bankruptcy Code Section 1111(b) Loan Note Instrument +1 more

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Parties

Michael R. Hammersley

Applicant

Nicholas Guy Edwards

First Respondent (joint Liquidator)

David Philip Soden

Second Respondent (joint Liquidator)

Paragon Offshore Limited

Third Respondent

Procedural Posture

Insolvency Application / Summary Judgment on Application to Strike Out/dismiss Revised Rule 14.11 Application

Legal Issues

  1. 1 Whether the Loan Note Instrument held by Paragon Offshore Limited should be excluded as a proof of debt under Rule 14.11 of the Insolvency Rules 2016
  2. 2 Whether Paragon Offshore PLC was personally liable for certain financial liabilities or only for secured/non-recourse claims
  3. 3 Whether the Revised Rule 14.11 application had real prospects of success

Ratio Decidendi

The Revised Rule 14.11 application was dismissed because Paragon Parent was personally liable under the finance documents, the claims were not non-recourse, the Loan Note Instrument did not represent deficiency claims, and no proof of debt had been submitted or admitted in respect of the Loan Note Instrument, making Rule 14.11 inapplicable. The application had no real prospect of success and was suitable for summary judgment.

Court Disposition

Application dismissed; summary judgment granted for the Joint Liquidators.

Orders

  • Revised Rule 14.11 application dismissed.
  • Summary judgment granted in favour of the Joint Liquidators.