Thursday 28 April 2022
Adele Lock (“C”) appeals against paragraphs 2 and 3 of the Order of HHJ Halliwell (High Court, Chancery Division), 5 November 2021 by which he dismissed C’s Application for an order under s.168(5) of the Insolvency Act 1986.
Factual background: this Appeal arises out of an application (the “Application”) by C for an order under s.168(5) of the Insolvency Act 1986 setting aside a purchase agreement dated 26 September 2019 entered into by (a) Edengate Homes (Butley Hall) Ltd (in liquidation); and (b) Paul Stanley as liquidator of Edengate Homes (Butley Hall) Ltd (in liquidation). The Application arose out of the insolvent liquidation of Edengate Homes (Butley Hall)), an SPV set up by C and her husband for the purposes of residential development (but ultimately the monies necessary for the project were not raised and the company went into voluntary liquidation). The liquidator, Mr Paul Stanley, had assigned causes of action originally vested in Edengate Homes (Butley Hall)) and statutory claims to which he was entitled as office holder. The Assignment is embodied in a written agreement dated 26th September 2019. The assignee was a specialist insolvency litigation financing company, Manolete Partners plc (“Manolete”). The main issues in the Application were the validity of the assignment and the standing of the creditor (C) who sought to challenge it. Although C made the Application in her capacity as a creditor, she is also a member and director of Edengate Homes (Butley Hall).