Re Petropavlovsk plc (in Administration) & Ors

Re Petropavlovsk plc (in Administration) & Ors

The court found that the schemes of arrangement should proceed to meetings as proposed, with a single class for each company, as there were no jurisdictional obstacles, the class composition was appropriate, and the notice given was sufficient in the urgent circumstances. The administration orders for the Jersey companies were justified as their COMI was in England and administration would achieve a better result for creditors.

Parties
Applicant: Petropavlovsk PLC (in Administration); Applicant: Petropavlovsk 2010 Limited; Applicant: Petropavlovsk 2016 Limited
Jurisdiction
England and Wales
Judgment Date
20 December 2022
Procedural Posture
Insolvency/scheme of Arrangement / Convening Hearing and Administration Application
Outcome
applications granted
Legal Topics
Scheme of Arrangement, Administration, Cross Border Insolvency, Sanctions, Class Composition
Insolvency Company Law Scheme of Arrangement Administration Cross Border Insolvency Sanctions Class Composition

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Parties

Petropavlovsk PLC (in Administration)

Applicant

Petropavlovsk 2010 Limited

Applicant

Petropavlovsk 2016 Limited

Applicant

Procedural Posture

Insolvency/scheme of Arrangement / Convening Hearing and Administration Application

Legal Issues

  1. 1 Whether to convene meetings of scheme creditors for three companies under Part 26 of the Companies Act 2006
  2. 2 Whether to place Petropavlovsk 2010 Limited and Petropavlovsk 2016 Limited into administration
  3. 3 Whether the notice given to creditors was sufficient

Ratio Decidendi

The court found that the schemes of arrangement should proceed to meetings as proposed, with a single class for each company, as there were no jurisdictional obstacles, the class composition was appropriate, and the notice given was sufficient in the urgent circumstances. The administration orders for the Jersey companies were justified as their COMI was in England and administration would achieve a better result for creditors.

Court Disposition

applications granted

Orders

  • Meetings of scheme creditors for each company to be convened as proposed
  • Petropavlovsk 2010 Limited and Petropavlovsk 2016 Limited placed into administration