Insolvency

The ongoing liquidation of the world’s second largest cryptocurrency exchange. Lexa Hilliard KC is assisting as Counsel to the Joint Provisional Liquidators of FTX Digital Markets Ltd. in the Bahamas, including, in particular, advising on cross border issues arising in the provisional liquidation.

This case involved a 7-day trial of an unfair prejudice petition, followed by a one-day quantum hearing. The petition was brought by minority shareholders in respect of two substantial property developments; at trial the Deputy Judge found numerous incidents of unfair prejudice, including a failure on behalf of the board to exercise valuable contractual rights held by the Company. Whilst the Company was heavily balance-sheet insolvent, the Deputy Judge granted a buy-out order in the Petitioners’ favour, on the basis that the Company be valued as if the unfairly prejudicial acts had not occurred, and, in addition, that part of the Company’s debt be ignored for the purposes of the buy-out order.

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The Royal Court of Guernsey dismisses a substantial unfair prejudice application, which represents a key aspect of multi-faceted ongoing litigation connected with the bankruptcy in the US of once high-flying billion-dollar investment firm Highland Capital Management LP. 

The judgment contains interesting discussion of (i) whether breach of a duty to act in good faith necessarily amounts to bad faith, and (ii) the circumstances in which equitable considerations may have a place in governing the proper conduct of the affairs of a company.

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Successfully acting for RSM UK Restructuring Advisory LLP, the Joint Liquidators of LB GP No.1 Ltd, in High Court litigation concerning LB GP’s claim to be paid funds out of the Lehman Brothers “waterfall”.

The litigation related to LB GP’s Court of Appeal success in 2021 and concerned, amongst other things, the competing priority of multi-billion US$ subordinated debt structures.

High Court confirms that a winding up petition may be brought notwithstanding a foreign exclusive jurisdiction clause.

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A key Privy Council decision of significance throughout the common law world, concerning the interplay between insolvency and trusts law. It has particular importance in circumstances where the trust fund is ‘insolvent’, in the sense that the trust assets are insufficient to meet the amounts due under the trustee’s right of indemnity.

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The first occasion on which the courts have considered whether a liquidator’s power under s.167(1) and Sch.4, para.5 of the Insolvency Act 1986 to “to carry on the business of the company so far as may be necessary for its beneficial winding up” can include consideration of environmental and other public interest factors.

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This was one of the last cases arising out of the high-profile collapse of Lehman Brothers. Heard in the Court of Appeal, it concerned the ranking of subordinated debt in the administrations of two Lehman companies.

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The longest and largest appeal ever heard by the Grand Court of the Cayman Islands including substantial issues of cross-border insolvency, tracing and asset recovery.

The case concerned an ongoing dispute between the world’s two largest steel families – Mittal v Ruia. The dispute initially pertained to the enforcement of a $1.5bn US arbitration award in England and Wales.

Representing a consortium of Indian banks, seeking Dr Mallya’s bankruptcy for a £1 billion debt. Dr Mallya, a famous and controversial public figure (and MP) in India, is the fallen Kingfisher Airways tycoon and is fighting extradition to India to face fraud charges. Enormously complex, involving Indian law, the concept of security in English and Indian law, cross-border issues (recognition and jurisdiction) and ulterior political motive.

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An application by the liquidators of Comet Group for directions permitting them to pay funds away to a SPV secured creditors in circumstances where the ICAEW threatened to report the liquidators to their licensing body if they did so.

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Highly publicised contested application to place a luxury care home / hotel group into administration.

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A consortium led by Canadian billionaire Lawrence Stroll, father of F1 racing driver Lance Stroll acquired the business and assets of the Force India racing team (owned by Indian billionaire Vijay Mallya), which collapsed into administration mid-season.

Advising on various issues arising in connection with the Canadian arm of Carillion.

Advising landlords on rights in relation to CVA.

Representing the liquidator and trustees in bankruptcy of the perpetrators of a Forex and teak Ponzi scheme resisting proceedings to discharge a WFO.

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In this matter, Marcia Shekerdemian KC acted for the IPs, Michael Bowell and Dermot Coakley, who without their knowledge or consent, were purportedly appointed as administrators of the company. The Judge described the conduct of the would-be appointor, Clifden IOM (No.1) Ltd as “an unprincipled asset grab” and declared that the appointment was void, awarding Marcia’s clients their costs on an indemnity basis.

Acting for the petitioning creditor in the insolvency aspect of this long-running litigation.

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Appearing on behalf of the Security and the Security Trustee.

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The Supreme Court’s decision on void transactions under s.127 of the Insolvency Act 1986.

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The leading case on the right to assert privilege in insolvency

A case concerning COMI and removing administrators under para 81 of Sch B1 to the Insolvency Act 1986.

Acting for the secured creditor and litigation funder of this Jersey company in the framework of a multi-million pound litigation funding arrangement following the collapse of the Orb v Ruhan proceedings.

Arbitration clauses and administration.

Receivership and provisional liquidation in the Bahamas.

Cayman Islands case (acting for the liquidator in relation to the collapse of a prime brokerage house).

Acting for the liquidator in relation to the distribution of US $19bn of assets, and acting for creditors, office-holders and the Pensions Regulator in connection with pensions matters.

Acting for creditors, office-holders and the Pensions Regulator in connection with pensions matters.

Bus L R 454: rule against “double-dipping”.

Representing the liquidators of Isis Ltd, an Isle of Man subsidiary of Kaupthing Bank, in in highly contentious insolvency proceedings in England and the Isle of Man involving GBP500 million of claims.