A Jersey Disast(Re)?: Exporting Corporate Insolvencies Across Borders
A Jersey Disast(re)?: Exporting Corporate Insolvencies Across Borders, [August 2013] 4 Corp. Rescue & Insol. 99
Posted: 13 Aug 2014
Date Written: June 1, 2013
In HSBC Bank plc v Tambrook Jersey Ltd  EWCA Civ 576 (22 May 2013), the English Court of Appeal found that section 426 of the Insolvency Act 1986 enabled an English court to grant assistance even when insolvency proceedings had not commenced in a foreign court. Tambrook, a Jersey-incorporated company with its centre of main interests in Jersey, had become unable to repay its primary creditor, the English bank HSBC. The parties sought to place the company into administration in England and obtained a letter of request for assistance from the Royal Court of Jersey. The English court of first instance, however, ruled that it could not grant the request in the absence of existing or intended insolvency proceedings in Jersey. While in five previous cases English courts seemed to have assisted the Jersey court when it had not opened domestic insolvency proceedings, the court of first instance concluded that no “reasoned” decision of the issue had taken place. The Court of Appeal reversed.
This article argues that while the Court of Appeal seems to have stretched the meaning of section 426 to grant assistance on facts different from established case law, the Tambrook decision achieved a correct result.
Keywords: insolvency, COMI, recognition, main proceeding, foreign assistance
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