Note by Stuart Preston and Julie Tait as joint administrators of Signal Real Estate Opportunities (Court of Session) [2024] CSOH 91 (26 September 2024)

Note by Stuart Preston and Julie Tait as joint administrators of Signal Real Estate Opportunities (Court of Session) [2024] CSOH 91 (26 September 2024)

The Scottish administration may be recognised as ancillary to the Luxembourg bankruptcy process, allowing the administrators to enter into a co-operation protocol with the Luxembourg receiver. However, the court's power to authorise departures from mandatory provisions of UK insolvency law is limited. The protocol may be approved only to the extent that it does not unjustifiably prejudice the rights of UK creditors or undermine the court's supervisory role. The administrators are directed to seek further modification of the protocol to address the court's concerns regarding creditor priorities, oversight, and workability.

Citation
[2024] CSOH 91
Parties
Joint Administrator (noter): Stuart Preston; Joint Administrator (noter): Julie Tait; Company in Administration: Signal Real Estate Opportunities (Lux) Investco IX S.À. R. L (in administration); Principal and Secured Creditor: Amber Green Spruce 2 LLP; Bankruptcy Receiver (curateur): Natalia Zuvak
Jurisdiction
Scotland
Judgment Date
26 September 2024
Procedural Posture
Application for Directions in Administration / Hearing on Motion for Directions Under Paragraph 63 of Schedule B1, Insolvency Act 1986
Outcome
Directions granted in part, subject to conditions
Legal Topics
Ancillary Liquidation, Cross Border Insolvency, Administration Directions, Distribution of Assets, Judicial Cooperation
Insolvency Private International Law Company Law Ancillary Liquidation Cross Border Insolvency Administration Directions Distribution of Assets Judicial Cooperation

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 14 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Stuart Preston

Joint Administrator (noter)

Julie Tait

Joint Administrator (noter)

Signal Real Estate Opportunities (Lux) Investco IX S.À. R. L (in administration)

Company in Administration

Amber Green Spruce 2 LLP

Principal and Secured Creditor

Natalia Zuvak

Bankruptcy Receiver (curateur)

Procedural Posture

Application for Directions in Administration / Hearing on Motion for Directions Under Paragraph 63 of Schedule B1, Insolvency Act 1986

Legal Issues

  1. 1 Whether the Scottish administration can be treated as ancillary to the Luxembourg bankruptcy process
  2. 2 Whether the administrators may lawfully enter into a co-operation protocol with the Luxembourg receiver that departs from mandatory provisions of UK insolvency law
  3. 3 Extent of the court's power to direct administrators to act contrary to statutory requirements in cross-border insolvency

Ratio Decidendi

The Scottish administration may be recognised as ancillary to the Luxembourg bankruptcy process, allowing the administrators to enter into a co-operation protocol with the Luxembourg receiver. However, the court's power to authorise departures from mandatory provisions of UK insolvency law is limited. The protocol may be approved only to the extent that it does not unjustifiably prejudice the rights of UK creditors or undermine the court's supervisory role. The administrators are directed to seek further modification of the protocol to address the court's concerns regarding creditor priorities, oversight, and workability.

Court Disposition

Directions granted in part, subject to conditions

Orders

  • Administrators may enter into a co-operation protocol with the Luxembourg receiver, provided modifications are made to safeguard UK creditor rights and court oversight.
  • Administrators are directed to seek further court approval if material changes to the protocol are proposed.