Representation of Lydian International Limited - [2020] JRC 207 (09 October 2020)

Representation of Lydian International Limited - [2020] JRC 207 (09 October 2020)

The company has lost its substratum and has no assets or prospect of business following the Ontario Court-approved restructuring; there is no purpose in its continued existence; it is just and equitable to wind up the company to implement the foreign plan, and no Jersey creditors are prejudiced.

Citation
[2020] JRC 207
Parties
Applicant/representor: Lydian International Limited; Senior Lender: Orion Mine Finance; Senior Lender/shareholder: Resource Capital Funds; Senior Lender: Osisko Gold Royalties Limited; Equipment Financier: Ameriabank Closed Joint Stock Company; Equipment Financier: Caterpillar Financial Services (UK) Limited; Equipment Financier: ING Bank NV; Shareholder/objector: Atilla Bozkaya
Jurisdiction
Jersey
Judgment Date
09 October 2020
Procedural Posture
Winding Up Petition (representation) / Final Judgment/order on Application for Just and Equitable Winding Up
Outcome
Application granted; company to be wound up on just and equitable grounds.
Legal Topics
Just and Equitable Winding Up, Recognition of Foreign Insolvency Proceedings, Loss of Substratum, Shareholder Rights in Insolvency, Comity
Insolvency Company Law Cross Border Insolvency Just and Equitable Winding Up Recognition of Foreign Insolvency Proceedings Loss of Substratum Shareholder Rights in Insolvency Comity

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Parties

Lydian International Limited

Applicant/representor

Orion Mine Finance

Senior Lender

Resource Capital Funds

Senior Lender/shareholder

Osisko Gold Royalties Limited

Senior Lender

Ameriabank Closed Joint Stock Company

Equipment Financier

Caterpillar Financial Services (UK) Limited

Equipment Financier

ING Bank NV

Equipment Financier

Atilla Bozkaya

Shareholder/objector

Procedural Posture

Winding Up Petition (representation) / Final Judgment/order on Application for Just and Equitable Winding Up

Legal Issues

  1. 1 Whether the company should be wound up on just and equitable grounds under Article 155 of the Companies (Jersey) Law 1991
  2. 2 Whether the Royal Court should assist the Ontario Court in implementing a foreign restructuring plan
  3. 3 Whether alternative insolvency procedures (creditors winding up, désastre) are appropriate

Ratio Decidendi

The company has lost its substratum and has no assets or prospect of business following the Ontario Court-approved restructuring; there is no purpose in its continued existence; it is just and equitable to wind up the company to implement the foreign plan, and no Jersey creditors are prejudiced.

Court Disposition

Application granted; company to be wound up on just and equitable grounds.

Orders

  • Lydian International Limited is to be wound up pursuant to Article 155 of the Companies (Jersey) Law 1991.
  • Ancillary orders granted as sought by counsel for the company.