Sigma Finance Corporation, Re Insolvency Act 1986

Sigma Finance Corporation, Re Insolvency Act 1986

The correct construction of clause 7.6 is the 'pay as you go' approach, requiring the Security Trustee to discharge Short Term Liabilities falling due during the Realisation Period as they mature, using available assets, without a pari passu element.

Parties
Issuer: Sigma Finance Corporation; Applicant: Receivers; Creditor: Party A; Creditor: Party B; Creditor: Party C; Creditor: Party D; Security Trustee: Deutsche Trustee Company Ltd
Jurisdiction
England and Wales
Judgment Date
07 November 2008
Procedural Posture
Application for Directions / Judgment
Outcome
Application granted; directions to Receivers to be formulated on 'pay as you go' basis.
Legal Topics
Construction of Security Trust Deed, Distribution of Assets During Receivership, Creditor Priorities
Insolvency Commercial Law Construction of Security Trust Deed Distribution of Assets During Receivership Creditor Priorities

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Parties

Sigma Finance Corporation

Issuer

Receivers

Applicant

Party A

Creditor

Party B

Creditor

Party C

Creditor

Party D

Creditor

Deutsche Trustee Company Ltd

Security Trustee

Procedural Posture

Application for Directions / Judgment

Legal Issues

  1. 1 Proper construction of clause 7.6 of the Security Trust Deed
  2. 2 Obligations of Receivers regarding payment of Short Term Liabilities during Realisation Period

Ratio Decidendi

The correct construction of clause 7.6 is the 'pay as you go' approach, requiring the Security Trustee to discharge Short Term Liabilities falling due during the Realisation Period as they mature, using available assets, without a pari passu element.

Court Disposition

Application granted; directions to Receivers to be formulated on 'pay as you go' basis.

Orders

  • Receivers to discharge Short Term Liabilities falling due during the Realisation Period as they mature, using available assets.
  • Directions to be agreed and formulated accordingly.