Administration order made in the UK is upheld for pan-European business
A landmark insolvency ruling has been won by PricewaterhouseCoopers partner
Edward Klempka in the French Supreme Court that could make it easier for
pan-European companies to restructure.
The Supreme Court backed a decision originally given in the Leeds High Court
that found that even though Bradford-based ISA Group, which collapsed in 2003,
had separate European businesses, they all came under the original
administration order originally made in the Leeds court.
The decision confirmed that Klempka and lawyers Hammonds can work together to
manage ISA’s insolvency on a pan-European basis under the original
Klempka said the French court had made a ‘key decision’ that would make the
successful restructuring of pan-European businesses a ‘far more viable’
possibility in the future.
John Alderton, who heads up the business and recovery and insolvency team at
Hammonds, said: ‘The ISA decision will give confidence to directors, creditors
and shareholders of such businesses that any rescue plan can be implemented
across Europe without parochial interference from local courts.’