Arctic Aviation Assets Designated Activity Company v Companies Acts 2014 (Approved) [2021] IEHC 277 (26 April 2021)

Arctic Aviation Assets Designated Activity Company v Companies Acts 2014 (Approved) [2021] IEHC 277 (26 April 2021)

The court has jurisdiction under s.537 as proposals for schemes of arrangement are to be formulated and the contracts contain outstanding non-monetary obligations. Repudiation is necessary for the survival of the companies and consistent with the objectives of Part 10 of the Act. Approval is granted as the application is unopposed and evidence is uncontradicted.

Citation
[2021] IEHC 277
Parties
Applicant: Arctic Aviation Assets DAC; Applicant: Norwegian Air International Limited; Applicant: Norwegian Air Shuttle ASA; Applicant: Drammensfjorden Leasing Limited; Applicant: Torskefjorden Leasing Limited; Applicant: Lysakerfjorden Leasing Limited; Counterparty: Massachusetts Port Authority; Counterparty: Laxfuel Corporation; Counterparty: Tom Bradley International Terminal Equipment Company Inc.; Counterparty: Bosfuel Corporation; Counterparty: SFO Fuel Company LLC; Counterparty: AUS Fuel Company LLC; Counterparty: Gate Gourmet Switzerland GMBH; Counterparty: AerData BV
Jurisdiction
Ireland
Judgment Date
26 April 2021
Procedural Posture
Application Under Companies Act 2014 S.537 for Approval of Contract Repudiation / Judgment on Unopposed Application
Outcome
application approved
Legal Topics
Examinership, Scheme of Arrangement, Repudiation of Executory Contracts, Cross Border Contracts, Quantification of Losses
Corporate Insolvency Company Law Examinership Scheme of Arrangement Repudiation of Executory Contracts Cross Border Contracts Quantification of Losses

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Parties

Arctic Aviation Assets DAC

Applicant

Norwegian Air International Limited

Applicant

Norwegian Air Shuttle ASA

Applicant

Drammensfjorden Leasing Limited

Applicant

Torskefjorden Leasing Limited

Applicant

Lysakerfjorden Leasing Limited

Applicant

Massachusetts Port Authority

Counterparty

Laxfuel Corporation

Counterparty

Tom Bradley International Terminal Equipment Company Inc.

Counterparty

Bosfuel Corporation

Counterparty

SFO Fuel Company LLC

Counterparty

AUS Fuel Company LLC

Counterparty

Gate Gourmet Switzerland GMBH

Counterparty

AerData BV

Counterparty

Procedural Posture

Application Under Companies Act 2014 S.537 for Approval of Contract Repudiation / Judgment on Unopposed Application

Legal Issues

  1. 1 Whether the court has jurisdiction to approve repudiation of contracts under s.537
  2. 2 Whether the contracts are executory with outstanding non-monetary obligations
  3. 3 Whether repudiation is necessary for scheme of arrangement and survival of companies

Ratio Decidendi

The court has jurisdiction under s.537 as proposals for schemes of arrangement are to be formulated and the contracts contain outstanding non-monetary obligations. Repudiation is necessary for the survival of the companies and consistent with the objectives of Part 10 of the Act. Approval is granted as the application is unopposed and evidence is uncontradicted.

Court Disposition

application approved

Orders

  • Approval of repudiation of contracts under s.537 Companies Act 2014
  • No order for quantum hearing under s.537(3); quantification to be determined by mechanism in scheme of arrangement