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Court grants liquidators relief for transaction at an undervalue (Re Whitestar Management Limited and others v Thompson and others)

Published on: 03 July 2018

Table of contents

  • What are the practical implications of the judgment?
  • What was the background?
  • What did the court decide?

Article summary

Restructuring & Insolvency analysis: Eleanor Temple, barrister of Kings Chambers, examines a Companies Court decision to grant relief under section 238 of the Insolvency Act 1986 (IA 1986) to the applicant joint liquidators of a company because a sale of the company's business constituted a transaction at an undervalue. The sale in question was under an asset sale agreement between the company and the second respondent company less than five months before the initial appointment of joint administrators to the company.

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