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Company – Winding-up. The respondent company had presented a petition to wind up a company. The Chancery Division gave reasons for granting the company's applications, under s 127 of the Insolvency Act 1986, for the validation of certain payments that it intended to make. The court ruled that validation was necessary to enable the company to effect restructuring or other plans (the plans), which presented the only prospect for unsecured creditors to recover debts owed by the company. The court further held that there were valid grounds for the hearings being held in private where to disclose confidential information concerning the company might impact adversely on the delivery of the plans, to the possible detriment of unsecured creditors, among others.
Company – Winding-up. The respondent company had presented a petition to wind up a company. The Chancery Division gave reasons for granting the company's applications, under s 127 of the Insolvency Act 1986, for the validation of certain payments that it intended to make. The court ruled that validation was necessary to enable the company to effect restructuring or other plans (the plans), which presented the only prospect for unsecured creditors to recover debts owed by the company. The court further held that there were valid grounds for the hearings being held in private where to disclose confidential information concerning the company might impact adversely on the delivery of the plans, to the possible detriment of unsecured creditors, among others.
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