Representation of Regus Plc 26-Oct-2020 [2020] JRC 226A (26 October 2020)

Representation of Regus Plc 26-Oct-2020 [2020] JRC 226A (26 October 2020)

The Court held that it was in the best interests of the creditors of Regus Plc to issue a Letter of Request to the Luxembourg court to place the company into bankruptcy in Luxembourg, given the company's centre of main interest, the urgency of the situation, and the absence of evidence that creditors would be prejudiced. However, the Court declined to fetter creditors' rights to seek relief in Jersey and ordered that creditors be given liberty to apply to set aside the order.

Citation
[2020] JRC 226A
Parties
Representor: Regus Plc
Jurisdiction
Jersey
Judgment Date
26 October 2020
Procedural Posture
Representation (insolvency/bankruptcy) / Post Hearing Judgment With Reasons
Outcome
Letter of Request issued to Luxembourg court for bankruptcy; liberty to apply granted to creditors; order and Letter of Request to be served on guarantee recipients.
Legal Topics
Letter of Request, Bankruptcy Jurisdiction, Distribution of Assets, Creditors' Rights, Comity, Economic Substance, Transaction at Undervalue
Insolvency Company Law Cross Border Insolvency Letter of Request Bankruptcy Jurisdiction Distribution of Assets Creditors' Rights Comity +2 more

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Parties

Regus Plc

Representor

Procedural Posture

Representation (insolvency/bankruptcy) / Post Hearing Judgment With Reasons

Legal Issues

  1. 1 Whether the Royal Court should issue a Letter of Request to the Luxembourg court to place Regus Plc into bankruptcy in Luxembourg
  2. 2 Whether the interests of creditors are protected under Luxembourg insolvency law compared to Jersey law
  3. 3 Whether the 2019 asset disposal could be set aside as a transaction at undervalue under Luxembourg law

Ratio Decidendi

The Court held that it was in the best interests of the creditors of Regus Plc to issue a Letter of Request to the Luxembourg court to place the company into bankruptcy in Luxembourg, given the company's centre of main interest, the urgency of the situation, and the absence of evidence that creditors would be prejudiced. However, the Court declined to fetter creditors' rights to seek relief in Jersey and ordered that creditors be given liberty to apply to set aside the order.

Court Disposition

Letter of Request issued to Luxembourg court for bankruptcy; liberty to apply granted to creditors; order and Letter of Request to be served on guarantee recipients.

Orders

  • Letter of Request to Luxembourg court to place Regus Plc into bankruptcy
  • Liberty to apply to creditors to set aside the order