In the matter of Bayswater Road (Holdings) Limited [2019] JRC 102 (04 June 2019)

In the matter of Bayswater Road (Holdings) Limited [2019] JRC 102 (04 June 2019)

The Court has jurisdiction to bless the Security Trustee's momentous decision under the Trusts Law, but not under the Security Interests Law, as Article 52 does not extend to pre-sale approval for compliance with Article 46. The Security Trustee has complied with its duty to obtain fair market value and acted commercially reasonably; the sale is approved.

Citation
[2019] JRC 102
Parties
Applicant: Representor; Respondent: Aurium
Jurisdiction
Jersey
Judgment Date
04 June 2019
Procedural Posture
Application for Court Approval / Final Judgment
Outcome
application granted in part
Legal Topics
Court Blessing of Trustee Decisions, Jurisdiction Under Security Interests Law, Sale of Collateral, Commercial Reasonableness
Trusts Secured Transactions Court Blessing of Trustee Decisions Jurisdiction Under Security Interests Law Sale of Collateral Commercial Reasonableness

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Parties

Representor

Applicant

Aurium

Respondent

Procedural Posture

Application for Court Approval / Final Judgment

Legal Issues

  1. 1 Does the Court have jurisdiction to approve the sale of collateral under the Security Interests (Jersey) Law 2012?
  2. 2 Is the Security Trustee entitled to the Court's blessing under the Trusts (Jersey) Law 1984 for a momentous decision to sell collateral?
  3. 3 Has the Security Trustee complied with its duty to obtain fair market value under Article 46?

Ratio Decidendi

The Court has jurisdiction to bless the Security Trustee's momentous decision under the Trusts Law, but not under the Security Interests Law, as Article 52 does not extend to pre-sale approval for compliance with Article 46. The Security Trustee has complied with its duty to obtain fair market value and acted commercially reasonably; the sale is approved.

Court Disposition

application granted in part

Orders

  • Court approves the Security Trustee's decision to sell the entire shareholding in BRHL under the Trusts (Jersey) Law 1984.
  • Court declines jurisdiction to grant approval under the Security Interests (Jersey) Law 2012.