The Receivers sought directions as to how to apply monies coming into their hands on the basis that, on advice, they considered that they needed the Court’s answer to an underlying difficult issue of the construction of the Security Trust Deed. The court was asked how the Receivers should apply monies coming into their hands during the period between their appointment and the happening, if one should happen, of an Insolvency Event, as defined. That turned on a question of construction of the Trust Deed. The court assumed that an Insolvency Event had not yet occurred.
Held: Pending the happening of an Insolvency Event the Receivers should apply monies coming into their hands, first, in prompt payment of the debts of Senior Creditors and any prior debts as and when they fell due; secondly, in making provision for payment of the same classes of debt not yet due and, if that left any surplus in the manner provided for in the payment priority established in clause 12.1(c) and following of the Trust Deed.
Briggs J
[2007] EWHC 2402 – 2 (Ch), [2007] EWHC 2116 (Ch), [2008] 1 BCLC 732
Bailii, Bailii
Insolvency Act 1986
England and Wales
Cited by:
See Also – In re Cheyne Finance Plc (No 2) ChD 17-Oct-2007
The court was asked as to the treatment of the assets of the company in case of a future insolvency.
Held: Briggs J decided section 123(1)(e) required: ‘In my judgment, the effect of the alterations to the insolvency test made in 1985 and now . .
Lists of cited by and citing cases may be incomplete.
Insolvency, Trusts
Updated: 10 December 2021; Ref: scu.264445