In re Estates & Gen. Devs. v [2013] 1 JLR 145 (04 February 2013)

In re Estates & Gen. Devs. v [2013] 1 JLR 145 (04 February 2013)

The court held that it may recognize the appointment of joint fixed charge receivers by the holder of a valid judicial hypothec over Jersey immovable property of an insolvent English company and may authorize them to manage and sell the Jersey property, even though Jersey law typically requires creditors to pursue established local remedies. This is permissible under art. 49(2) of the Bankruptcy (Desastre) (Jersey) Law 1990, especially where the company is insolvent and minimizing costs is important.

Citation
[2013] 1 JLR 145
Parties
Applicant: Estates & General Developments; Respondent: Unknown (insolvent English company)
Jurisdiction
Jersey
Judgment Date
04 February 2013
Procedural Posture
Application for Recognition of Foreign Receivership / Judgment
Outcome
Application granted
Legal Topics
Recognition of Foreign Receivers, Bankruptcy (desastre) (jersey) Law 1990, Judicial Hypothec, Management and Sale of Immovable Property
Conflict of Laws Insolvency Recognition of Foreign Receivers Bankruptcy (desastre) (jersey) Law 1990 Judicial Hypothec Management and Sale of Immovable Property

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Parties

Estates & General Developments

Applicant

Unknown (insolvent English company)

Respondent

Procedural Posture

Application for Recognition of Foreign Receivership / Judgment

Legal Issues

  1. 1 Whether Jersey court may recognize appointment of joint fixed charge receivers by a foreign creditor over Jersey immovable property
  2. 2 Whether Jersey court may authorize foreign receivers to manage and sell Jersey property under art. 49 of the Bankruptcy (Desastre) (Jersey) Law 1990

Ratio Decidendi

The court held that it may recognize the appointment of joint fixed charge receivers by the holder of a valid judicial hypothec over Jersey immovable property of an insolvent English company and may authorize them to manage and sell the Jersey property, even though Jersey law typically requires creditors to pursue established local remedies. This is permissible under art. 49(2) of the Bankruptcy (Desastre) (Jersey) Law 1990, especially where the company is insolvent and minimizing costs is important.

Court Disposition

Application granted

Orders

  • Recognition of appointment of joint fixed charge receivers
  • Authorization for receivers to manage and sell Jersey property