Restructuring and Insolvency analysis:
The application was made by Glint Pay Ltd, Glint Services Ltd and Glint Pay UK Ltd (the Glint Companies) which were formerly in administration. The Glint Companies sought declarations as to the effect of discharge of the Glint Companies’ former administrators and/or orders varying/rescinding orders giving rise to the former administrators’ discharge from office.
Insolvency and Companies Court (ICC) Judge Jones’s judgment contains a detailed analysis of the function of an administrator’s discharge and the importance of the guarding against the ‘unfair risk’ of claims post discharge as identified by Mr Justice Sales in Re Hella Telecommunications (Luxembourg) II SCA. The court considered the limited exception from discharge under paragraph 98 of Schedule B1 to the Insolvency Act 1986 (IA 1986), namely applications under IA 1986, Sch B1, para 75 as well as the court’s power under rule 12.59 of the Insolvency (England and Wales) Rules 2016 (IR 2016) to vary or rescind orders made under IA 1986, Pts 1–7.
In this case the order in question was an order dated 6 December 2019 granting discharge of the respondent administrators under IA 1986, Sch B1, para 98(2)(c) (the Discharge Order).
This article was first published by Lexis®PSL on 25th November 2020
Authored by Luke Tucker Harrison, co-founding Partner.