Latzur Ltd (In Receivership) v Companies Act 2014 (Approved) [2021] IEHC 94 (11 February 2021)

Latzur Ltd (In Receivership) v Companies Act 2014 (Approved) [2021] IEHC 94 (11 February 2021)

Chelsey was successful in establishing the receiver was appointed on foot of a fixed charge, entitling it to distribution of funds, but only partially successful on the issues; costs allocation reflects both the proportion of issues won and conduct, resulting in Chelsey recovering 20% of its costs from Revenue.

Citation
[2021] IEHC 94
Parties
Applicant/receiver: Ken Fennell; Notice Party/fixed Charge Holder: Chelsey Investissements SA; Notice Party/respondent/preferential Creditor: Revenue Commissioners
Jurisdiction
Ireland
Judgment Date
11 February 2021
Procedural Posture
Application for Directions Under Companies Act 2014 / Post Substantive Judgment, Costs and Orders
Outcome
Chelsey Investissements SA entitled to recover 20% of its costs from Revenue Commissioners; declarations as to fixed charge and crystallisation; stay granted pending appeal.
Legal Topics
Fixed Vs Floating Charge, Receiver Appointment, Costs Allocation, Automatic Crystallisation, Preferential Creditors
Corporate Insolvency Company Law Fixed Vs Floating Charge Receiver Appointment Costs Allocation Automatic Crystallisation Preferential Creditors

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Parties

Ken Fennell

Applicant/receiver

Chelsey Investissements SA

Notice Party/fixed Charge Holder

Revenue Commissioners

Notice Party/respondent/preferential Creditor

Procedural Posture

Application for Directions Under Companies Act 2014 / Post Substantive Judgment, Costs and Orders

Legal Issues

  1. 1 Whether the receiver was appointed on foot of a fixed charge or floating charge
  2. 2 Entitlement to distribution of funds in receivership
  3. 3 Appropriate allocation of costs given partial success on issues

Ratio Decidendi

Chelsey was successful in establishing the receiver was appointed on foot of a fixed charge, entitling it to distribution of funds, but only partially successful on the issues; costs allocation reflects both the proportion of issues won and conduct, resulting in Chelsey recovering 20% of its costs from Revenue.

Court Disposition

Chelsey Investissements SA entitled to recover 20% of its costs from Revenue Commissioners; declarations as to fixed charge and crystallisation; stay granted pending appeal.

Orders

  • Declaration receiver appointed over assets of Latzur Limited on foot of fixed security.
  • Automatic conversion of non-fixed charges under debenture effected per Clause 3.4.2(4).