MUNCHENER HYPOTHEKENBANK eG FOR AN ADMINISTRATION ORDER IN TERMS OF SCHEDULE B1 TO THE INSOLVENCY ACT 1986 IN RESPECT OF SEVENTEEN YELLOW CROWNS SARL [2023] ScotCS CSOH_36 (09 June 2023

MUNCHENER HYPOTHEKENBANK eG FOR AN ADMINISTRATION ORDER IN TERMS OF SCHEDULE B1 TO THE INSOLVENCY ACT 1986 IN RESPECT OF SEVENTEEN YELLOW CROWNS SARL [2023] ScotCS CSOH_36 (09 June 2023

The Scottish court refused to appoint domestic administrators because the Luxembourg court, as the natural forum, had already appointed a bankruptcy trustee, and there was no objective evidence that the foreign practitioner would face difficulties in realising the Scottish asset or that his appointment was exceptionable. The principle of international comity and practicality dictated against unnecessary competition between insolvency practitioners.

Citation
[2023] ScotCS CSOH_36
Parties
Petitioner: Münchener Hypothekenbank eG; Company: Seventeen Yellow Crowns SÀRL; Respondent (curateur De Faillite): Christian Steinmetz
Jurisdiction
Scotland
Procedural Posture
Petition for Administration Order / Final Judgment
Outcome
petition refused
Legal Topics
Administration Order, Jurisdiction, International Comity, Discretion in Insolvency Proceedings
Insolvency Cross Border Insolvency Company Law Administration Order Jurisdiction International Comity Discretion in Insolvency Proceedings

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Parties

Münchener Hypothekenbank eG

Petitioner

Seventeen Yellow Crowns SÀRL

Company

Christian Steinmetz

Respondent (curateur De Faillite)

Procedural Posture

Petition for Administration Order / Final Judgment

Legal Issues

  1. 1 Whether the Scottish court should grant an administration order in respect of a Luxembourg-incorporated company with its principal asset in Scotland when a Luxembourg bankruptcy trustee has already been appointed
  2. 2 Whether the court's discretion should be exercised to appoint domestic administrators in competition with a foreign insolvency practitioner

Ratio Decidendi

The Scottish court refused to appoint domestic administrators because the Luxembourg court, as the natural forum, had already appointed a bankruptcy trustee, and there was no objective evidence that the foreign practitioner would face difficulties in realising the Scottish asset or that his appointment was exceptionable. The principle of international comity and practicality dictated against unnecessary competition between insolvency practitioners.

Court Disposition

petition refused