Overview

The Guernsey Royal Court has delivered its first judgment on a contested company administration application since the introduction of the Companies (Guernsey) Law, 2008. The Court has ordered the appointment of Joint Administrators to Propinvest Group Limited, the Guernsey holding company of a substantial property group.

The application for the appointment of administrators was brought by DnB Nor Bank, Norway's largest financial services company, and arose from a lending facility which exceeded £200m. The Court accepted that the Company was insolvent, rejecting assertions by the Company that it had a genuine and substantial dispute in respect of the debt.

In this briefing, Mourant Ozannes outlines why the decision provides useful guidance on the factors the court will consider in exercising its discretion to make an administration order, and how it affirms that the Court in Guernsey will follow closely the approach adopted in administration applications by the English courts.

Click 'View Briefing' to learn more.