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
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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
Legal Issues
- 1 Whether the court has jurisdiction to sanction the liquidators' methodology for asset distribution.
- 2 Whether the Netting Law applies to the Corporate Guarantees.
- 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.
Full Case Text
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