'New' IPOs and celebrity bankruptcy, HMRC and football insolvency and the latest BPIRs

21 MAR 2011

News reaches the blog from The Guardian that bankruptcy is seen as a soft option for some celebrities and that the 'new' (?!) IPO and IPA regime does not quite provide the fresh-start that the Enterprise Act 2002 changes may have intended. Back in 2005 one respondent to the Bankruptcy Court Survey responded to the news of their IPO in less than positive terms. They noted that they were aghast that they had to pay money to their creditors despite their discharge. They used slightly more fruity language. Elsewhere, Accountancy Age are reporting that HMRC have failed to fast-track the football insolvency cases. This preferential treatment of some species of football creditors must cost the revenue a fortune. Meanwhile, the learned editors of the BPIRs have selected another fine set of cases for our cogitation in their famous law report series:

"[2011] BPIR 1
1st Credit (Finance) Ltd v Bartram [2010] EWHC 2910 (Ch)
ChD, Roth J, 19 October 2010
- STATUTORY DEMANDS - Set aside application - Position of creditor with security

[2011] BPIR 4
Banfield v Harrow London Borough Council [2010] EWHC 2707 (Ch)
ChD, Lewison J, 6 October 2010
- BANKRUPTCY PETITION - Costs - Unpaid council tax - Debtor asserting defence at petition hearing - Petition adjourned with costs to be paid by debtor - Petition subsequently withdrawn - Appropriate order for costs of the adjournment - Whether costs to be on standard or indemnity basis

[2011] BPIR 7
(1) Bolsover District Council (2) Mansfield District Council v (1) Ashfield Nominees Ltd (2) Dennis Rye Ltd (3) East Midlands Developments Ltd (4) Hardwick Nominees Ltd [2010] EWCA Civ 1129
CA, Laws, Lloyd and Gross LJJ, 19 October 2010
- WINDING-UP PETITION - Unpaid council tax - Enforcement of liability orders - Whether statute barred - Limitation Act 1980, s 9 - Local Government Finance Act 1992 - Council Tax (Administration and Enforcement) Regulations 1992 - Insolvency Act 1986, ss 122(1)(f), 221(5)(b), 267

[2011] BPIR 19
Bush v Bank Mandiri (Europe) Ltd
ChD, Miss Registrar Barber, 5 October 2010
- BANKRUPTCY - Statutory demands - Set aside application - Exercise of discretion
- STATUTORY DEMANDS - Service of demand - Need to comply with procedural requirements
- STATUTORY DEMANDS - Cross-claims - Whether cross-claim equalled or exceeded amount demanded - Evidence incomplete

[2011] BPIR 39
Delaney v Chen and Another [2010] EWCA Civ 1455
CA, Lord Neuberger (Master of the Rolls), Carnwath and Sullivan LJJ, 16 November 2010
- TRANSACTIONAL AVOIDANCE - Transaction at an undervalue - Insolvency Act 1986, s 423

[2011] BPIR 44
Green (Trustee in Bankruptcy of Geoffrey Alan Tranckle) v Bramston (Liquidator of Kingshouse Developments Ltd) and Kingshouse Developments Ltd (In Liquidation) [2010] EWHC 3106 (Ch)
ChD, His Honour Judge David Cooke, 2 December 2010
- BANKRUPTCY - ASSETS - Whether properties owned by bankrupt or a company in which bankrupt was a shareholder - Trustee in bankruptcy's investigations as to ownership - Trustee realising the properties - Trustee conceding the properties owned by the company - Extent of trustee's entitlement to allowance for costs and expenses of investigations - Extent of trustee's entitlement to allowance for costs and expenses of realisation - Whether allowance proprietary against the properties or personal against the company - Analysis of Berkeley Applegate principles

[2011] BPIR 59
Her Majesty's Commissioners for Revenue and Customs v Begum (As Representative of the Estate of Mohammed Kamal Uddin Deceased and as Representative of the Existing Beneficiaries of the Bibi Settlement) and Others [2010] EWHC 1799 (Ch)
ChD, David Richards J, 15 July 2010
- AMENDMENT - Limitation - Foreign defendant - Limitation Act 1980, s 35 - Civil Procedure Rules, r 17.4 - Insolvency Act 1986, s 423

[2011] BPIR 96
Her Majesty's Revenue and Customs and Another v Holland [2010] UKSC 51
SC, Lord Hope of Craighead (Deputy President), Lord Walker of Guestingthorpe, Lord Collins of Mapesbury, Lord Clarke of Stone¬cum-Ebony and Lord Saville of Newdigate, 24 November 2010
- LIQUIDATION - De facto director - Misfeasance - Relief by the court - Companies Act 1985, s 727 - Insolvency Act 1986, s 212

[2011] BPIR 145
Her Majesty's Revenue and Customs v Millichap (Liquidator of Gloucester Foods Ltd)
ChD, Mr Registrar Jaques, 30 July 2010
- LIQUIDATION - VAT - Proof of debt - Extension of time to apply to reverse decision on proof - Set off - Value Added Tax Regulations 1995, reg 29 - Insolvency Rules 1986, r 4.90

[2011] BPIR 158
Irwin (Administrator of Daniel Lynch Ltd) and Daniel Lynch Ltd (In Administration) v Lynch and Lynch [2010] EWCA Civ 1153
CA, Lloyd, Wilson and Gross LJJ, 6 October 2010
- ADMINISTRATION - Claim against former directors in misfeasance - Claim brought under Insolvency Act 1986, s 212 by administrator - Administrator lacking locus standi to bring claim - Whether company to be substituted for the administrator outside of limitation period - Limitation Act 1980, s 35 - Civil Procedure Rules, rr 17.4(4), 19.5 - Insolvency Act 1986, s 212

[2011] BPIR 166
Re Loy (A Debtor); O'Sullivan v Loy
US DC (E Virg, United States District Judge Mark S Davis, 23 June 2010
- BANKRUPTCY - Transaction avoidance - Avoiding transactions effected after the commencement of the case - Meaning of the commencement of the case - United States Code (Title 11) (Bankruptcy), ss 549, 1504
BANKRUPTCY - Foreign main proceedings - Effective date of recognition of foreign main proceedings - UNCITRAL Model Law on Cross-Border Insolvency - Cross-Border Insolvency Regulations

[2011] BPIR 181
Loy v O'Sullivan [2010] EWHC 3583 (Ch)
ChD, His Honour Judge McCahill QC (sitting as a High Court judge), 24 August 2010
- BANKRUPTCY - Annulment - Whether bankruptcy order on supervisor's default petition ought to have been made - Relevance of debtor's centre of main interest - Council Regulation (EC) No 1346/2000 on Insolvency Proceedings - UNCITRAL Model Law on Cross-Border Insolvency - Insolvency Act 1986, ss 264, 265
- BANKRUPTCY - Annulment - Alleged errors in bankruptcy order - Whether caused injustice to the debtor - Whether errors remediable - Whether any such injustice gave rise to grounds to annul bankruptcy order - Insolvency Rules 1986, r 7.55
- BANKRUPTCY - Assets - Matrimonial home - Use it or lose it - Meaning and effect - Whether fact that trustee might have lost right to claim a property factor in exercise of discretion on annulment - Insolvency Act 1986, s 283A

[2011] BPIR 181
Loy v O'Sullivan [2010] EWHC 3583 (Ch)
ChD, His Honour Judge McCahill QC (sitting as a High Court judge),
24 August 2010
- BANKRUPTCY - Annulment - Whether bankruptcy order on supervisor's default petition ought to have been made - Relevance of debtor's centre of main interest - Council Regulation (EC) No 1346/2000 on Insolvency Proceedings - UNCITRAL Model Law on Cross-Border Insolvency - Insolvency Act 1986, ss 264, 265
- BANKRUPTCY - Annulment - Alleged errors in bankruptcy order - Whether caused injustice to the debtor - Whether errors remediable - Whether any such injustice gave rise to grounds to annul bankruptcy order - Insolvency Rules 1986, r 7.55
- BANKRUPTCY - Assets - Matrimonial home - Use it or lose it - Meaning and effect - Whether fact that trustee might have lost right to claim a property factor in exercise of discretion on annulment - Insolvency Act 1986, s 283A

[2011] BPIR 213
McGuinness v Norwich and Peterborough Building Society [2010] EWHC 2989 (Ch)
ChD, Briggs J, 23 November 2011
- BANKRUPTCY - Liability under guarantee - Whether a liquidated sum
Guarantees - Construction - Differing types of obligation imposed on guarantor
- LIQUIDATED SUMS - Whether a damages claim for a precise amount should be viewed as a liquidated sum

[2011] BPIR 223
Secretary of State for Work and Pensions v Payne and Cooper [2010] EWCA Civ 1431
CA, Mummery, Smith and Toulson LJJ, 14 December 2010
- DEBT RELIEF ORDERS - Authorities seeking to recover overpaid benefits from debtors by making deductions from ongoing benefit payments - Whether recovery process a 'remedy' - Whether caught by moratorium
- DEBT RELIEF ORDERS - Nature of regime - Differences between debt relief and bankruptcy regimes

[2011] BPIR 242
Re St George's Property Services (London) Ltd (In Administration); Clark and Another v Finnerty and Another [2010] EWHC 2538 (Ch)
ChD, Sir Andrew Morritt Chancellor of the High Court, 14 October 2010
- ADMINISTRATORS - Application to remove - Whether court should accede to application - Factors relevant on a removal application
- EXTORTIONATE CREDIT BARGAINS - Default interest mechanism - Parties who may challenge a loan transaction

[2011] BPIR 256
Re Super Aguri F1 Ltd (In Liquidation)
ChD, Mr Registrar Jaques, 26 October 2010
- ADMINISTRATION - Remuneration - Practice Statement: The Fixing and Approval of the Remuneration of Appointees 2004

[2011] BPIR 280
White v Davenham Trust Ltd [2010] EWHC 2748 (Ch)
ChD, Floyd J, 1 November 2010
- STATUTORY DEMANDS - Set aside application - Whether exercise of general discretion to set aside properly exercised
Extortionate credit bargains - Criteria
Default interest provision - Whether a penalty"

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