Re Capitol Films Ltd (In Administration)


Reference:
[2010] EWHC 3223 (Ch); [2011] 2 B.C.L.C. 359; [2011] B.P.I.R. 334

Date:
9th December 2010

Court:
High Court

Comment:

The administrators of a film distribution company made an application under the Insolvency Act 1986 Sch.B1 para.71 for permission to sell assets that were subject to fixed charges. The secured creditors opposed the application and expressed concern regarding the conduct of the business and the failure of the administrators to investigate it.

 

Held:
The application was refused. The administrators’ conduct of a film company in administration had been so unreasonable that it was appropriate to make an order for them to pay the costs of the application personally and on the indemnity basis.



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