Raghav Trivedi Secures Validation Order Following Winding-up Petition

Raghav Trivedi appeared in the Rolls Building last week before an ICC judge acting for a property developer on an urgent validation order application under s.127 Insolvency Act 1986.

Contracts had been exchanged for the sale of a property before a winding-up petition was presented against it. After the petition was presented, the buyer became aware of the proceedings and threatened to withdraw from the transaction.

The developer applied for an urgent validation order. The application required the Court to determine whether the proposed sale should be permitted to proceed despite the winding-up petition and whether it would benefit the unsecured creditors as a class.

Evidence submitted in support of the application explained that the proceeds of sale would be used to complete another development, pay trade creditors and support the implementation of a proposed company voluntary arrangement. The supporting documents included an estimated outcome statement and a draft order.

Having considered the evidence and the anticipated effect of the transaction on unsecured creditors, the Court granted the validation order.

Raghav was instructed by Robin Johnston of Sills & Betteridge Solicitors.