Cresta Estates Limited & Ors v MPB Developments Limited & Ors

Cresta Estates Limited & Ors v MPB Developments Limited & Ors

The company is balance-sheet insolvent because the present value of its assets (£5.5 million) is far less than its discounted liabilities to Cresta and Luxor (£64.1 million), and there is no realistic or credible evidence that the company will be able to meet its liabilities by 31 December 2029. The Business Plans relied on by the Respondents are speculative, outdated, and unsupported by evidence. The statutory test for insolvency is satisfied and the court exercises its discretion to grant the winding-up petition.

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
02 April 2025
Procedural Posture
Winding Up Petition / Final Judgment on Preliminary Issue
Outcome
Petition granted; company to be wound up
Legal Topics
Winding Up, Balance Sheet Insolvency, Prospective Creditor Standing
Insolvency Company Law Winding Up Balance Sheet Insolvency Prospective Creditor Standing

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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 / Final 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
  3. 3 Whether the Business Plans provide a realistic basis for repayment of liabilities

Ratio Decidendi

The company is balance-sheet insolvent because the present value of its assets (£5.5 million) is far less than its discounted liabilities to Cresta and Luxor (£64.1 million), and there is no realistic or credible evidence that the company will be able to meet its liabilities by 31 December 2029. The Business Plans relied on by the Respondents are speculative, outdated, and unsupported by evidence. The statutory test for insolvency is satisfied and the court exercises its discretion to grant the winding-up petition.

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.
  • Further petitions adjourned pending outcome of winding-up; no need for determination if winding-up proceeds.