Re VTB CAPITAL PLC

Re VTB CAPITAL PLC

The court has jurisdiction to appoint administrators as statutory conditions are met, the company is unable to pay its debts due to sanctions, and administration is likely to achieve a better result for creditors than liquidation. However, the appointment will only take effect upon evidence that both OFSI and OFAC licences are in place.

Parties
Applicant: VTB Capital Plc
Jurisdiction
England and Wales
Judgment Date
06 April 2022
Procedural Posture
Insolvency Application / Judgment on Application for Appointment of Administrators
Outcome
Conditional approval of appointment of administrators; order not to be made or sealed until evidence of both OFSI and OFAC licences is filed.
Legal Topics
Appointment of Administrators, Effect of Sanctions on Insolvency Proceedings, Jurisdiction Under Insolvency Act 1986, Banking Act 2009 Conditions
Insolvency Law Banking Law Sanctions Law Appointment of Administrators Effect of Sanctions on Insolvency Proceedings Jurisdiction Under Insolvency Act 1986 Banking Act 2009 Conditions

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Parties

VTB Capital Plc

Applicant

Procedural Posture

Insolvency Application / Judgment on Application for Appointment of Administrators

Legal Issues

  1. 1 Whether the court has jurisdiction to appoint administrators under the Insolvency Act 1986 and Banking Act 2009 given the sanctions imposed on the company
  2. 2 Whether the objectives of administration can be achieved in the circumstances
  3. 3 Whether the appointment should be made conditional on the grant of a US OFAC licence

Ratio Decidendi

The court has jurisdiction to appoint administrators as statutory conditions are met, the company is unable to pay its debts due to sanctions, and administration is likely to achieve a better result for creditors than liquidation. However, the appointment will only take effect upon evidence that both OFSI and OFAC licences are in place.

Court Disposition

Conditional approval of appointment of administrators; order not to be made or sealed until evidence of both OFSI and OFAC licences is filed.

Orders

  • Court is willing to appoint Stephen Brown, David Soden, and Matthew Mawhinney as administrators, conditional on filing evidence of OFSI and OFAC licences.
  • No order to be made or sealed until such evidence is filed; if circumstances change, matter to be restored for further hearing.