Representation of Gardner and Yuill and Aspin (Royal Court : Hearing (Civil) : Le Cocq : Companies) [2025] JRC 144 (27 May 2025)

Representation of Gardner and Yuill and Aspin (Royal Court : Hearing (Civil) : Le Cocq : Companies) [2025] JRC 144 (27 May 2025)

The court has jurisdiction to sanction the liquidators' methodology under Article 186A of the Companies (Jersey) Law 1991 and the relevant Act of Court. The Corporate Guarantees are within scope of the Netting Law, requiring the liquidators to give effect to LBG's actions. Subrogation principles apply to resolve intercompany claims, and the Proposed Model for distribution is rational, made in good faith, and in the best interests of creditors. The orders sought are granted.

Citation
[2025] JRC 144
Parties
Representor/liquidator: Stuart Arthur Gardner; Representor/liquidator: Gavin David Yuill; Representor/liquidator: Kristopher Stewart Aspin; Company in Liquidation: Petroleum Pipe Group Limited; Company in Liquidation: Pipeline Supplies Bahrain Wll Limited; Company in Liquidation: Petrostem Group Limited; Company in Liquidation: Petrostem International Limited; Company in Liquidation: Petrostem Rentals Limited; Secured Creditor: Lloyds Banking Group
Jurisdiction
Jersey
Judgment Date
27 May 2025
Procedural Posture
Application for Court Sanction in Liquidation / Final Judgment/order
Outcome
application granted
Legal Topics
Liquidation, Distribution of Assets, Subrogation, Netting, Court Sanction, Intercompany Claims

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 11 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Stuart Arthur Gardner

Representor/liquidator

Gavin David Yuill

Representor/liquidator

Kristopher Stewart Aspin

Representor/liquidator

Petroleum Pipe Group Limited

Company in Liquidation

Pipeline Supplies Bahrain Wll Limited

Company in Liquidation

Petrostem Group Limited

Company in Liquidation

Petrostem International Limited

Company in Liquidation

Petrostem Rentals Limited

Company in Liquidation

Lloyds Banking Group

Secured Creditor

Procedural Posture

Application for Court Sanction in Liquidation / Final Judgment/order

  1. 1 Whether the court has jurisdiction to sanction the liquidators' methodology for asset distribution.
  2. 2 Whether the Netting Law applies to the Corporate Guarantees.
  3. 3 Whether subrogation principles apply to intercompany claims arising from LBG's actions.

Ratio Decidendi

The court has jurisdiction to sanction the liquidators' methodology under Article 186A of the Companies (Jersey) Law 1991 and the relevant Act of Court. The Corporate Guarantees are within scope of the Netting Law, requiring the liquidators to give effect to LBG's actions. Subrogation principles apply to resolve intercompany claims, and the Proposed Model for distribution is rational, made in good faith, and in the best interests of creditors. The orders sought are granted.

Court Disposition

application granted

Orders

  • Court sanctions the liquidators' Proposed Model for distribution of assets to unsecured creditors.
  • Liquidators are authorised to distribute assets in accordance with the methodology set out in the Proposed Model.