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Mr Justice Peter Smith has handed down his judgment in Butters & Ors v BBC Worldwide Ltd & Ors  EWHC 1954 (Ch) (20 August 2009). The case contains a number of interesting points on what constitutes an "insolvency event" and Mr Justice Peter Smith's definition of insolvency:
"A company becomes insolvent if it fails to satisfy one of the two tests set out in section 123 IA 1986, namely that it is unable to pay its debts after service of statutory demand or alternatively it is proved to the satisfaction of the Court that the value of the company's assets is less than the amount of its liabilities taking into account its contingent and prospective liabilities ("balance sheet insolvency"). Following the onset of insolvency a company is then wound up either voluntarily or compulsorily. For the company to be wound up voluntarily generally it requires a special resolution by the company. If that happens the voluntary winding up is to commence on the date of that resolution. In the case of a compulsory winding up by order of the Court the winding up relates back to the date of the presentation of the petition unless a voluntary resolution has been passed in which case the winding up relates back to the passing of that resolution (section 129 IA 1986). In the case of an administration the company must be insolvent before it can go into administration and the administration takes effect either when the order of the Court is made or (more usually) when the conditions of the Notice of appointment are satisfied."
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...