Hellas Telecommunications (Luxembourg) II SCA (In Administration); Weather Finance III SARL (In Administration) & Another v Hellas Telecommunications (Luxembourg) II SCA (In Administration)


Reference:
[2011] EWHC 3176 (Ch), [2013] 1 BCLC 426

Date:
30th November 2011

Court:
Chancery Division

Facts:

Administrators’ powers; End of administration; Whether company to be dissolved or put into compulsory liquidation; Whether trust fund used to finance administration to be available to liquidator

Jonathan Lopian represented the informal creditors committee (ICC) in this high profile, multibillion-euro corporate insolvency in its successful application for the compulsory liquidation of the company against the administrators’ declared intention to commence the process of the company’s dissolution. The ICC was concerned that the company had viable legal claims against former management, investors and advisers which it believed had not been properly investigated by the administrators, whereas the administrators considered that the company had no property to distribute to creditors. The ICC also successfully argued that the balance of a €10M trust fund (approximately €6M) which had been provided by the pre-pack purchaser as part of the purchase consideration to meet the costs and expenses of the administration was available to meet the costs of the liquidation and was not immediately repayable upon the conclusion of the administration.


Judge:
Mr Justice Sales

Comment:

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Instructing Solicitor: Jones Day

Associated Members:

Practice Areas:

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