VTB Capital Plc [2022] EWHC 1106 (Ch) (06 April 2022)

VTB Capital Plc [2022] EWHC 1106 (Ch) (06 April 2022)

The court is satisfied that the company is unable to pay its debts due to frozen banking facilities, that administration will achieve a better result for creditors than liquidation, and that regulatory and licensing conditions are met. However, the appointment of administrators is contingent on the grant of a US OFAC licence in addition to the OFSI licence.

Citation
[2022] EWHC 1106 (Ch)
Parties
Applicant: VTB Capital Plc
Jurisdiction
England and Wales
Judgment Date
06 April 2022
Procedural Posture
Administration Application Under Insolvency Act 1986 / Judgment on Application for Appointment of Administrators
Outcome
Court is willing to appoint administrators, but order is conditional and will not be made until evidence of both OFSI and OFAC licences is filed.
Legal Topics
Appointment of Administrators, Sanctions Impact on Insolvency, Administration Objectives, Licensing Requirements
Insolvency Banking Sanctions Appointment of Administrators Sanctions Impact on Insolvency Administration Objectives Licensing Requirements

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Parties

VTB Capital Plc

Applicant

Procedural Posture

Administration Application Under Insolvency Act 1986 / Judgment on Application for Appointment of Administrators

Legal Issues

  1. 1 Whether the court has jurisdiction to appoint administrators under the Insolvency Act 1986 given sanctions
  2. 2 Whether administration achieves the statutory objectives under Schedule B1
  3. 3 Whether the appointment is permissible given regulatory and licensing constraints

Ratio Decidendi

The court is satisfied that the company is unable to pay its debts due to frozen banking facilities, that administration will achieve a better result for creditors than liquidation, and that regulatory and licensing conditions are met. However, the appointment of administrators is contingent on the grant of a US OFAC licence in addition to the OFSI licence.

Court Disposition

Court is willing to appoint administrators, but order is conditional and will not be made until evidence of both OFSI and OFAC licences is filed.

Orders

  • Appointment of Stephen Brown, David Soden, and Matthew Mawhinney as administrators is approved in principle, subject to filing evidence of OFSI and OFAC licences.
  • No order to be made or sealed until licences are filed; if circumstances change, matter to be restored for further hearing.