Quinn Finance & Ors v Lyndhurst Development Trading SA & Ors [2012] NICh 15 (3 May 2012)

Quinn Finance & Ors v Lyndhurst Development Trading SA & Ors [2012] NICh 15 (3 May 2012)

No consideration was provided for the assignments of the Univermag debt; assignments were at undervalue and intended to put assets beyond reach of creditors. Lyndhurst failed to establish bona fide purchaser defence. All impugned transactions are null and void; Demesne is entitled to the benefit of all rights purportedly transferred.

Citation
[2012] NICh 15
Parties
First Plaintiff: Quinn Finance; Second Plaintiff: Irish Bank Resolution Corporation Limited; Third Plaintiff: Quinn Hotels Praha AS; Fourth Plaintiff: Demesne Investments Limited; First Defendant: Lyndhurst Development Trading SA; Third Defendant: Innishmore Consultancy Limited; Fourth Defendant: Public Joint Stock Company Univermag Ukraina
Jurisdiction
Northern Ireland
Judgment Date
03 May 2012
Procedural Posture
Insolvency Proceedings / Substantive Judgment on Article 367 Claim; Balance of Claims Adjourned
Outcome
All impugned transactions declared null and void; Demesne restored as sole beneficiary.
Legal Topics
Transactions at Undervalue, Asset Protection, Breach of Fiduciary Duty, Void Assignments, Mareva Injunction
Insolvency Company Law Equity Transactions at Undervalue Asset Protection Breach of Fiduciary Duty Void Assignments Mareva Injunction

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Parties

Quinn Finance

First Plaintiff

Irish Bank Resolution Corporation Limited

Second Plaintiff

Quinn Hotels Praha AS

Third Plaintiff

Demesne Investments Limited

Fourth Plaintiff

Lyndhurst Development Trading SA

First Defendant

Innishmore Consultancy Limited

Third Defendant

Public Joint Stock Company Univermag Ukraina

Fourth Defendant

Procedural Posture

Insolvency Proceedings / Substantive Judgment on Article 367 Claim; Balance of Claims Adjourned

Legal Issues

  1. 1 Whether assignments of debt were void under Article 367 of the Insolvency (Northern Ireland) Order 1989
  2. 2 Whether assignments were at undervalue and intended to put assets beyond reach of creditors
  3. 3 Whether Lyndhurst could claim bona fide purchaser defence

Ratio Decidendi

No consideration was provided for the assignments of the Univermag debt; assignments were at undervalue and intended to put assets beyond reach of creditors. Lyndhurst failed to establish bona fide purchaser defence. All impugned transactions are null and void; Demesne is entitled to the benefit of all rights purportedly transferred.

Court Disposition

All impugned transactions declared null and void; Demesne restored as sole beneficiary.

Orders

  • Declaration that assignments and supplementary loan agreements are void and of no effect.
  • Declaration that Demesne Investments Limited is solely entitled to the benefit of all rights purportedly transferred by the impugned transactions.