We acted for the Jersey borrowers in the Glengall Bridge group, which own development land in London worth in excess of £50m. A secured creditor sought letters of request to place the Jersey companies into English administration. The novel features were that there was apparent balance sheet solvency and the fact that appointment of administrators could trigger contractual rights leading to the destruction of value (and thus the loss of any surplus). In the circumstances, the equity-holders and unsecured creditors were permitted to intervene and contest the application. The application to the Royal Court for letters of request succeeded, the Court taking the view that it was inappropriate to delay matters in order to oblige unwilling secured creditors to negotiate an alternative outcome to administration.
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