Application had been made for the removal of the liquidators, who sought security for their costs of defending the application. They said that the company had made several substantial payments to reduce borrowings in the time shortly before the liquidation, increasing unsecured creditors and reducing the secured creditor liabilities. The claimants said the liquidation had been drawn out with unnecessarily fees incurred.
Held: In the absence of any authority on the correct approach to be followed, the court felt it proper to apply a merits based approach rather than a security based approach. The application for security for costs was rejected.
Judges:
The Hon Mr Justice Evans-Lombe
Citations:
[2003] EWHC 1981 (Ch)
Links:
Statutes:
Jurisdiction:
England and Wales
Insolvency
Updated: 04 October 2022; Ref: scu.185456
