Urgent Administration Order Secured to Protect Cross-Border Assets

Last week Raghav Trivedi was urgently instructed to represent three creditors of a UK holding company, each also a shareholder and two acting as directors, in a High Court application for an administration order.

The UK parent company owned 100% of a Delaware subsidiary, which in turn owned 100% of a Florida-based subsidiary pilot training school. The parent company was clearly insolvent on a balance sheet basis, and a deadlock had arisen between the four directors. The creditors had lost confidence in their fellow board members and sought independent oversight. The objective of the application was to appoint administrators capable of taking control via the UK entity, safeguarding the U.S. operations, and facilitating a going concern sale of the flight school to maximise creditor recoveries.

Urgency was paramount as the flight school was due for an inspection that could impact its Air Agency Certificate, essential for its continued trading. Loss of the certificate would have severely diminished goodwill and shareholder value, jeopardising creditor interests.

Appearing before His Honour Judge Williams, Raghav successfully secured the administration order, preserving the value of the U.S. entities and protecting the creditors’ position.

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