We have successfully obtained permission from the Royal Court of Guernsey for Joint Administrators to make a distribution to unsecured creditors during the course of an administration. The application was made under section 380A of the Companies (Guernsey) Law, 2008 and is understood to be the first order granted under this section.
Section 380A, which came into force on 1 January 2023, allows administrators to make distributions to creditors if it assists the purpose of the administration order. Our application provides clarity on how this provision operates in practice and demonstrates the Court's pragmatic approach in considering guidance from English case law.
We acted for the Joint Administrators in this matter. Our team was led by Insolvency & Dispute Resolution partner Adam Cole and senior associate Alison Antill.
Adam commented: 'We are pleased to have secured an outcome that provides clarity for the Administrators and delivers a practical solution for unsecured creditors.'
Alison added: 'This outcome ensures a timely and fair distribution for creditors and provides certainty for fiduciary professionals navigating complex administrations.'
For a deeper analysis of this decision and its implications, read our full article here.