Videology Ltd, Re Cross-Border Insolvency Regulations 2006

Videology Ltd, Re Cross-Border Insolvency Regulations 2006

The court held that the presumption that Videology Limited's COMI was in the UK was not displaced by the applicant's evidence. The company's registered office, trading premises, staff, customer and creditor relationships, and representations to finance creditors all pointed to the UK as COMI. However, the company had an establishment in the US, justifying recognition of the Chapter 11 proceedings as a foreign non-main proceeding. Discretionary relief equivalent to a UK administration moratorium was granted under Article 21, as this would benefit creditors and protect their interests, with the process subject to the supervision of the US court and the possibility of further UK proceedings...

Parties
Applicant: Videology Limited; Related Party: Videology Inc.; Foreign Representative: Mr. Scott Ferber
Jurisdiction
England and Wales
Judgment Date
16 August 2018
Procedural Posture
Cross Border Insolvency Recognition Application / Judgment on Recognition and Discretionary Relief
Outcome
Application for recognition as a foreign main proceeding refused; recognition as a foreign non-main proceeding granted; discretionary relief granted under Article 21.
Legal Topics
Recognition of Foreign Insolvency Proceedings, Centre of Main Interests (comi), Foreign Main and Non Main Proceedings, Discretionary Relief Under Model Law, Moratorium Against Creditor Actions
Insolvency Cross Border Insolvency Company Law Recognition of Foreign Insolvency Proceedings Centre of Main Interests (comi) Foreign Main and Non Main Proceedings Discretionary Relief Under Model Law Moratorium Against Creditor Actions

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Parties

Videology Limited

Applicant

Videology Inc.

Related Party

Mr. Scott Ferber

Foreign Representative

Procedural Posture

Cross Border Insolvency Recognition Application / Judgment on Recognition and Discretionary Relief

Legal Issues

  1. 1 Whether Chapter 11 proceedings in the US in respect of Videology Limited should be recognised as a foreign main proceeding under Article 17 of the UNCITRAL Model Law as incorporated in the Cross-Border Insolvency Regulations 2006 (CBIR)
  2. 2 Whether the COMI of Videology Limited was in the US or the UK at the relevant time
  3. 3 Whether the Chapter 11 proceedings should be recognised as a foreign non-main proceeding

Ratio Decidendi

The court held that the presumption that Videology Limited's COMI was in the UK was not displaced by the applicant's evidence. The company's registered office, trading premises, staff, customer and creditor relationships, and representations to finance creditors all pointed to the UK as COMI. However, the company had an establishment in the US, justifying recognition of the Chapter 11 proceedings as a foreign non-main proceeding. Discretionary relief equivalent to a UK administration moratorium was granted under Article 21, as this would benefit creditors and protect their interests, with the process subject to the supervision of the US court and the possibility of further UK proceedings...

Court Disposition

Application for recognition as a foreign main proceeding refused; recognition as a foreign non-main proceeding granted; discretionary relief granted under Article 21.

Orders

  • Recognition of US Chapter 11 proceedings as a foreign non-main proceeding in respect of Videology Limited
  • Moratorium against individual creditor actions and commencement of UK insolvency proceedings without leave of the court