Representation of Matthew David Smith and Ors -19-Feb-2021 [2021] JRC 047 (19 February 2021)

Representation of Matthew David Smith and Ors -19-Feb-2021 [2021] JRC 047 (19 February 2021)

The Court recognised the appointment of the Joint Administrators and granted them powers equivalent to those under English law, including a moratorium restraining creditor actions, on the basis of comity, the universality principle in insolvency, and the need for consistency across jurisdictions to facilitate the administration and protect the interests of creditors and employees.

Citation
[2021] JRC 047
Parties
Representors/applicants: Arcadia Group Limited, Redcastle Limited, Top Shop/Top Man Limited, Top Shop/Top Man (Properties) Limited, Burton/Dorothy Perkins Properties Limited, Dorothy Perkins Trading Limited, Burton Trading Limited; Administrators: Joint Administrators (Matthew David Smith and others)
Jurisdiction
Jersey
Judgment Date
19 February 2021
Procedural Posture
Cross Border Insolvency Recognition and Assistance / Application for Recognition and Moratorium
Outcome
Application granted
Legal Topics
Recognition of Foreign Insolvency Proceedings, Powers of Administrators, Moratorium on Creditor Actions, Assistance to Foreign Courts, Comity
Insolvency Cross Border Insolvency Company Law Recognition of Foreign Insolvency Proceedings Powers of Administrators Moratorium on Creditor Actions Assistance to Foreign Courts Comity

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Parties

Arcadia Group Limited, Redcastle Limited, Top Shop/Top Man Limited, Top Shop/Top Man (Properties) Limited, Burton/Dorothy Perkins Properties Limited, Dorothy Perkins Trading Limited, Burton Trading Limited

Representors/applicants

Joint Administrators (Matthew David Smith and others)

Administrators

Procedural Posture

Cross Border Insolvency Recognition and Assistance / Application for Recognition and Moratorium

Legal Issues

  1. 1 Whether the Royal Court of Jersey should recognise the appointment of English administrators over English companies with assets in Jersey
  2. 2 Whether the Court should grant the Joint Administrators powers equivalent to those under English law
  3. 3 Whether a moratorium should be granted restraining creditor actions in Jersey

Ratio Decidendi

The Court recognised the appointment of the Joint Administrators and granted them powers equivalent to those under English law, including a moratorium restraining creditor actions, on the basis of comity, the universality principle in insolvency, and the need for consistency across jurisdictions to facilitate the administration and protect the interests of creditors and employees.

Court Disposition

Application granted

Orders

  • Recognition of the Joint Administrators as administrators of the companies in Jersey
  • Grant of powers equivalent to those under English law for the purpose of trading the Jersey stores