The company raced in the Formula 1 series. Its main sponsors had been British American Tobacco, but because of restrictions of tobacco advertising, the company lost substantial revenue and fell in to loss, and entered into an individual voluntary arrangement. It had just signed a new joint venture agreement with Honda, when BAT called in its loan. BAT sought an administration order. Mount Eagle a smaller shareholder refused to sell out and opposed the application, saying the administration was not sought in good faith.
Held: The debts were substantial, and the shares had no independent value. The proposal would allow for payment of the company’s debts. Administrators would have a duty to te court to act fairly, and the an order would not be unfair. The application was not an abuse.
Judges:
Lord Justice Evans-Lombe
Citations:
[2004] EWHC 2947 (Ch)
Statutes:
Jurisdiction:
England and Wales
Citing:
Cited – Re a Company No 001573 of 1983 ChD 1983
The court was presented with a petition of a creditor to wind up a company. The company had leasehold premises which contained a provision for forfeiture of the lease in the event of such a petition. The petitioner had agreed with the company’s . .
Cited – Re Bugle Press Ltd CA 2-Jan-1961
Shareholders with over 90% of the issued shares sought to acquire the remaining shares, and create another company to do so. That company offered to purchase the shares at a valuation. The majority shareholders accepted but the minority shareholder . .
Cited – Re Bugle Press Ltd ChD 1961
Two shareholders held more than 90% of the issued shares of the company. To get rid of the holder of the remaining shares, they incorporated another company for the purpose of acquiring all the shares of the company. The acquiring company offered to . .
Lists of cited by and citing cases may be incomplete.
Insolvency, Company
Updated: 27 June 2022; Ref: scu.220954
