Representation of Wright and Massey re Monsoon Accessorize Ltd and Accessorize Ltd [2020] JRC 199 (30 September 2020)

Representation of Wright and Massey re Monsoon Accessorize Ltd and Accessorize Ltd [2020] JRC 199 (30 September 2020)

The Royal Court exercised its discretion under Article 49 of the Law and as a matter of comity to recognise and assist the English joint administrators, granting them powers to surrender leases and novate employment contracts in Jersey, as this outcome preserves jobs, protects priority creditors, and achieves a better result for creditors than liquidation.

Citation
[2020] JRC 199
Parties
Applicant: Monsoon Accessorize Limited (in administration); Applicant: Accessorize Limited (in administration); Applicant: FRP Trading Advice Limited (joint administrators); Court: Royal Court of Jersey; Requesting Court: High Court of England and Wales; Purchaser: Adena Brands Limited; Purchaser: Adena Services Limited; Guarantor/director: Peter Simon
Jurisdiction
Jersey
Judgment Date
30 September 2020
Procedural Posture
Cross Border Insolvency Recognition / Post Order, Reasons for Decision
Outcome
Letter of Request granted; orders made substantially in terms of assistance sought by the English High Court.
Legal Topics
Recognition of Foreign Administrators, Assistance to Foreign Courts, Priority of Debts, Distribution to Creditors
Insolvency Cross Border Insolvency Company Law Recognition of Foreign Administrators Assistance to Foreign Courts Priority of Debts Distribution to Creditors

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Parties

Monsoon Accessorize Limited (in administration)

Applicant

Accessorize Limited (in administration)

Applicant

FRP Trading Advice Limited (joint administrators)

Applicant

Royal Court of Jersey

Court

High Court of England and Wales

Requesting Court

Adena Brands Limited

Purchaser

Adena Services Limited

Purchaser

Peter Simon

Guarantor/director

Procedural Posture

Cross Border Insolvency Recognition / Post Order, Reasons for Decision

Legal Issues

  1. 1 Whether the Royal Court should recognise and assist English joint administrators under Article 49 of the Bankruptcy (Désastre) (Jersey) Law 1990
  2. 2 Whether the administrators should be accorded powers to surrender leases and novate employment contracts in Jersey
  3. 3 Whether the interests of Jersey creditors and employees are adequately protected

Ratio Decidendi

The Royal Court exercised its discretion under Article 49 of the Law and as a matter of comity to recognise and assist the English joint administrators, granting them powers to surrender leases and novate employment contracts in Jersey, as this outcome preserves jobs, protects priority creditors, and achieves a better result for creditors than liquidation.

Court Disposition

Letter of Request granted; orders made substantially in terms of assistance sought by the English High Court.

Orders

  • Recognition and effect given to the administration of Monsoon and Accessorize and appointment of joint administrators in Jersey.
  • Joint administrators accorded powers necessary to fulfil duties, including surrendering leases and novating employment contracts in Jersey.