In re Lehman Bros International (Europe) (No 4)

Subject Matter

INSOLVENCY — Administration — Distribution of assets — Ranking of claims which might be made against available assets of unlimited company after payment of general unsecured unsubordinated creditors — Potential liability of members for liabilities of company — Relationship between liability as members and claims as creditors — Whether claim of subordinated debt holder ranking ahead of or behind statutory interest — Whether claim ranking ahead of or behind foreign currency conversion claims — Whether foreign currency conversion claims payable out of assets — Whether contractual interest provable or statutory interest payable for period of administration if immediately followed by liquidation — Whether members’ liability to contribute in liquidation limited to funds required to pay debts and liabilities proved in liquidation — Whether contributory rule applying in administration — Insolvency Act 1986 (as amended by Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings Order 2009, Sch 1, para 75(3)), ss 74, 189 — Insolvency Rules 1986 (as amended by Insolvency (Amendment) Rules 2003, Sch 1, para 9 and Insolvency (Amendment) Rules 2005, r 12), r 2.88(1)(7)

[2014] EWHC 704 (Ch); [2015] Ch 1; [2014] 3 WLR 466; [2015] 2 All ER 111; [2015] 1 All ER (Comm) 813; [2015] 1 BCLC 151; [2014] WLR (D) 132, Ch D

INSOLVENCY — Administration — Distribution of assets — Ranking of claims which might be made against available assets of unlimited company after payment of general unsecured unsubordinated creditors — Potential liability of members for liabilities of company — Relationship between liability as members and claims as creditors — Whether claim of subordinated debt holder ranking ahead of or behind statutory interest — Whether claim ranking ahead of or behind foreign currency conversion claims — Whether foreign currency conversion claims payable out of assets — Whether contractual interest provable or statutory interest payable for period of administration if immediately followed by liquidation — Whether members’ liability to contribute in liquidation limited to funds required to pay debts and liabilities proved in liquidation — Whether contributory rule applying in administration — Insolvency Act 1986, ss 74(1), 189 — Insolvency Rules 1986 (as amended by Insolvency (Amendment) Rules 2003, Sch 1, para 9 and Insolvency (Amendment) Rules 2005, r 12), r 2.88(1)(7)

[2015] EWCA Civ 485; [2016] Ch 50; [2015] 3 WLR 1205; [2016] 2 All ER 836; [2016] 1 All ER (Comm) 1079; [2015] 2 BCLC 433; [2015] WLR (D) 218, CA

INSOLVENCY — Administration — Distribution of assets — Ranking of claims which might be made against available assets of unlimited company after payment of general unsecured unsubordinated creditors — Potential liability of members for company’s debts — Relationship between liability as members and claims as creditors — Whether claim of subordinated debt holder ranking ahead of or behind statutory interest — Whether claim ranking ahead of or behind foreign currency conversion claims — Whether foreign currency conversion claims payable out of assets — Whether contractual interest provable or statutory interest payable for period of administration if immediately followed by liquidation — Whether members’ liability to contribute in liquidation limited to funds required to pay debts and liabilities proved in liquidation — Whether contributory rule applying in administration — Insolvency Act 1986 (c 45), ss 74(1), 150, 189(2) — Insolvency Rules 1986 (SI 1986/1925) (as amended by Insolvency (Amendment) Rules 2003 (SI 2003/1730), r 5(1), Sch 1, para 9, Insolvency (Amendment) Rules 2005 (SI 2005/527), rr 10, 12 and Insolvency (Amendment) Rules 2010 (SI 2010/686) r 2, Sch 1, paras 83, 195), rr 2.86, 2.88(1)(7), 4.93, 4.195

[2017] UKSC 38; [2018] AC 465; [2017] 2 WLR 1497; [2018] 1 All ER 205; [2018] 1 All ER (Comm) 629; [2017] 2 BCLC 149; Case details, SC(E)

Appellate History