The High Court has recognised British Virgin Islands liquidation orders concerning Mount Capital Fund Limited and Mount Capital Asset Subsidiary Limited, and allowed their joint liquidators to seek further assistance in Ireland.
In a judgment delivered on 5 March 2012, Miss Justice Laffoy said the court had an inherent jurisdiction to recognise insolvency proceedings from outside the European Union. The application was made ex parte by liquidators Hadley J. Chilton and John J. Greenwood. The companies had been put into liquidation by BVI court orders in 2009, and orders made there in January 2012 gave the liquidators leave to seek recognition in Ireland.
The liquidators said the companies had suffered financial losses exceeding US$200 million. They wanted access to company books, records, assets and property within the Irish court’s jurisdiction, and intended to seek further orders under section 245 of the Companies Act 1963.
Their affidavit described requests for records and information from PwC, Deloitte and Citi. PwC had indicated it would provide some categories of documents subject to conditions, but the liquidators considered its response insufficient. Deloitte’s solicitors said the firm held no company books or records, and described the documents it did hold as working papers. The liquidators also said they needed to speak with two Citi employees about the companies’ administration. Justice Laffoy stressed that the firms had not had an opportunity to respond on affidavit and said it would be inappropriate at this stage to decide whether their responses were adequate.
The judge found a prima facie case that the relevant BVI insolvency powers were equivalent to section 245. She also distinguished the application from the Supreme Court’s Flightlease decision, which concerned enforcement of a foreign judgment establishing liability to pay money. The liquidators here sought recognition and permission to apply for relief; they did not seek enforcement of such a judgment.
The court recognised the BVI orders made in relation to each company and directed the Irish High Court and its officers to act in aid of the BVI court. The order gives the liquidators liberty to apply for section 245 orders and other relief connected with their duties. It does not itself compel PwC, Deloitte or Citi to produce documents or provide information. Any party against whom the liquidators later apply may, on notice, challenge the Irish court’s jurisdiction insofar as the order affects that party.