Cresta Estates Ltd & Ors v MPB Developments Ltd & Ors (Re Petition) [2025] EWHC 198 (Ch) (28 January 2025)

Cresta Estates Ltd & Ors v MPB Developments Ltd & Ors (Re Petition) [2025] EWHC 198 (Ch) (28 January 2025)

On unchallenged expert evidence, the present value of the company's assets (£5.5 million) is far less than its discounted liabilities (£64.1 million), and there is no realistic or viable basis in the business plans to conclude the company will be able to meet its debts when due. The company is therefore balance-sheet insolvent under section 123(2) of the Insolvency Act 1986.

Citation
[2025] EWHC 198 (Ch)
Parties
Petitioner: Cresta Estates Limited; Petitioner: Luxor Properties Limited; Petitioner: Stanbreck Properties Ltd; Respondent: MPB Developments Limited; Respondent: Paul Hilton; Respondent: Matthew Welsh
Jurisdiction
England and Wales
Judgment Date
28 January 2025
Procedural Posture
Winding Up Petition / Judgment on Preliminary Issue
Outcome
Petition granted; company to be wound up.
Legal Topics
Winding Up, Balance Sheet Insolvency, Prospective Creditors, Section 123 Insolvency Act 1986
Insolvency Company Law Winding Up Balance Sheet Insolvency Prospective Creditors Section 123 Insolvency Act 1986

Case Brief

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Parties

Cresta Estates Limited

Petitioner

Luxor Properties Limited

Petitioner

Stanbreck Properties Ltd

Petitioner

MPB Developments Limited

Respondent

Paul Hilton

Respondent

Matthew Welsh

Respondent

Procedural Posture

Winding Up Petition / Judgment on Preliminary Issue

Legal Issues

  1. 1 Whether MPB Developments Limited is balance-sheet insolvent under section 123(2) of the Insolvency Act 1986
  2. 2 Whether the company can reasonably be expected to meet its liabilities to Cresta and Luxor when due on 31 December 2029

Ratio Decidendi

On unchallenged expert evidence, the present value of the company's assets (£5.5 million) is far less than its discounted liabilities (£64.1 million), and there is no realistic or viable basis in the business plans to conclude the company will be able to meet its debts when due. The company is therefore balance-sheet insolvent under section 123(2) of the Insolvency Act 1986.

Court Disposition

Petition granted; company to be wound up.

Orders

  • MPB Developments Limited is to be wound up by the court under section 122(1)(f) of the Insolvency Act 1986.