Coleraine Football and Sports Club Ltd, Re [2005] NICh 4 (08 September 2005)

Coleraine Football and Sports Club Ltd, Re [2005] NICh 4 (08 September 2005)

Applying the 'modest threshold of probability' test, the court is satisfied that there is a real prospect the purpose of survival as a going concern may be achieved due to exceptional circumstances of pledged funding from the Friends of Coleraine; administration order is granted with strict supervision and control.

Citation
[2005] NICh 4
Parties
Company: Coleraine Football and Sports Club Limited; Director/applicant/creditor: David Cameron; Director/applicant: Ivor Reilly; Respondent/creditor: Her Majesty's Revenue and Customs (Enforcement and Insolvency Service); Creditor/objector: Adrian Joseph Stewart; Former Director/creditor/objector: Dr Maurice Laverty
Jurisdiction
Northern Ireland
Judgment Date
08 September 2005
Procedural Posture
Company Insolvency Administration Petition / Judgment on Administration Order Petition
Outcome
administration order granted
Legal Topics
Administration Order, Company Voluntary Arrangement, Creditor Rights, Director Duties, Jurisdiction, Court Supervision
Insolvency Company Law Administration Order Company Voluntary Arrangement Creditor Rights Director Duties Jurisdiction Court Supervision

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Parties

Coleraine Football and Sports Club Limited

Company

David Cameron

Director/applicant/creditor

Ivor Reilly

Director/applicant

Her Majesty's Revenue and Customs (Enforcement and Insolvency Service)

Respondent/creditor

Adrian Joseph Stewart

Creditor/objector

Dr Maurice Laverty

Former Director/creditor/objector

Procedural Posture

Company Insolvency Administration Petition / Judgment on Administration Order Petition

Legal Issues

  1. 1 Whether the statutory threshold for making an administration order under Article 21 of the Insolvency (Northern Ireland) Order 1989 is met
  2. 2 Whether the court should exercise its discretion to make an administration order given the company's financial circumstances and prospects
  3. 3 Whether the petition was validly presented given the directors' lack of quorum under the Articles of Association

Ratio Decidendi

Applying the 'modest threshold of probability' test, the court is satisfied that there is a real prospect the purpose of survival as a going concern may be achieved due to exceptional circumstances of pledged funding from the Friends of Coleraine; administration order is granted with strict supervision and control.

Court Disposition

administration order granted

Orders

  • Administration order made under Article 21 of the Insolvency (Northern Ireland) Order 1989.
  • Administrator to dismiss current directors.