Representation re Charles Le Quesne (1956) Ltd [2011] JRC 155 (04 August 2011)

Representation re Charles Le Quesne (1956) Ltd [2011] JRC 155 (04 August 2011)

It is just and equitable to wind up the company under Article 155 because completion of the two contracts during liquidation is likely to result in a significantly better outcome for creditors than an immediate cessation of business. The court is satisfied that the proposed arrangements, including a loan from Havard and coverage of liquidators' costs, provide a particular advantage justifying departure from the usual creditors' winding up procedure.

Citation
[2011] JRC 155
Parties
Company: Charles Le Quesne (1956) Limited; Director/applicant: Mr Hunter; Director/applicant: Mr Boyd; Director/respondent: Mr Simmons; Director/respondent: Mr Barter; Purchaser/lender: Havard C&D Limited
Jurisdiction
Jersey
Judgment Date
04 August 2011
Procedural Posture
Winding Up Petition / Judgment on Application for Just and Equitable Winding Up
Outcome
Winding up order granted under Article 155 of the Companies (Jersey) Law.
Legal Topics
Just and Equitable Winding Up, Creditors' Interests, Liquidator Powers
Insolvency Company Law Just and Equitable Winding Up Creditors' Interests Liquidator Powers

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Parties

Charles Le Quesne (1956) Limited

Company

Mr Hunter

Director/applicant

Mr Boyd

Director/applicant

Mr Simmons

Director/respondent

Mr Barter

Director/respondent

Havard C&D Limited

Purchaser/lender

Procedural Posture

Winding Up Petition / Judgment on Application for Just and Equitable Winding Up

Legal Issues

  1. 1 Whether it is just and equitable to wind up the company under Article 155 of the Companies (Jersey) Law
  2. 2 Whether the court should authorise liquidators to complete existing contracts during winding up

Ratio Decidendi

It is just and equitable to wind up the company under Article 155 because completion of the two contracts during liquidation is likely to result in a significantly better outcome for creditors than an immediate cessation of business. The court is satisfied that the proposed arrangements, including a loan from Havard and coverage of liquidators' costs, provide a particular advantage justifying departure from the usual creditors' winding up procedure.

Court Disposition

Winding up order granted under Article 155 of the Companies (Jersey) Law.

Orders

  • The company is to be wound up under Article 155.
  • Liquidators are authorised to complete the two States contracts as part of the winding up.