Representation of Anthony Investments (Esplanade) Ltd and Others [2013] JRC 217A (12 November 2013)

Representation of Anthony Investments (Esplanade) Ltd and Others [2013] JRC 217A (12 November 2013)

The companies, particularly AI(E), were insolvent on a cash flow basis as they could not pay their debts as they fell due, especially the debt to Simon and Aida Neal, which was immediately payable. Forbearance by Simon and Aida was unilateral and could be withdrawn at any time. The cost and uncertainty of further forbearance, and the risk of preference if the promissory note were registered, made it just and equitable to wind up the companies under Article 155 of the Companies (Jersey) Law 1991.

Citation
[2013] JRC 217A
Parties
Company: Anthony Investments (Esplanade) Limited; Company: Evreux Holdings Limited; Company: JCN Investments (Jersey) Limited; Trustee: Hawksford Trust Company Jersey Limited; Creditor/intervener: Simon Neal; Creditor/intervener: Aida Neal; Officer of the Court: The Viscount
Jurisdiction
Jersey
Judgment Date
12 November 2013
Procedural Posture
Winding Up Petition / Judgment After Contested Hearing
Outcome
Winding up orders granted for all three companies under Article 155 of the Companies (Jersey) Law 1991.
Legal Topics
Winding Up on Just and Equitable Grounds, Cash Flow Insolvency, Preference of Creditors, Directors' Duties, Forbearance and Moratorium, Article 155 Companies (jersey) Law 1991
Insolvency Company Law Trusts Winding Up on Just and Equitable Grounds Cash Flow Insolvency Preference of Creditors Directors' Duties Forbearance and Moratorium +1 more

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Parties

Anthony Investments (Esplanade) Limited

Company

Evreux Holdings Limited

Company

JCN Investments (Jersey) Limited

Company

Hawksford Trust Company Jersey Limited

Trustee

Simon Neal

Creditor/intervener

Aida Neal

Creditor/intervener

The Viscount

Officer of the Court

Procedural Posture

Winding Up Petition / Judgment After Contested Hearing

Legal Issues

  1. 1 Whether the companies are insolvent on a cash flow basis
  2. 2 Whether it is just and equitable to wind up the companies under Article 155
  3. 3 Whether further forbearance by creditors is feasible or acceptable

Ratio Decidendi

The companies, particularly AI(E), were insolvent on a cash flow basis as they could not pay their debts as they fell due, especially the debt to Simon and Aida Neal, which was immediately payable. Forbearance by Simon and Aida was unilateral and could be withdrawn at any time. The cost and uncertainty of further forbearance, and the risk of preference if the promissory note were registered, made it just and equitable to wind up the companies under Article 155 of the Companies (Jersey) Law 1991.

Court Disposition

Winding up orders granted for all three companies under Article 155 of the Companies (Jersey) Law 1991.

Orders

  • Appointment of Mr Adrian Rabet and Mr Philip Sykes as liquidators of Anthony Investments (Esplanade) Limited, Evreux Holdings Limited, and JCN Investments (Jersey) Limited.
  • Ancillary orders to ensure orderly winding up.