High Court considers application of s. 435 IA 1986 to subsidiary company

July 10, 2020

Judgment has recently been handed down in Re CGL Realisations Limited (Formerly Comet Group Limited) (In Liquidation) [2020] EWHC 1707 (Ch).

The court considered whether a subsidiary company and its ultimate parent were connected within the meaning of s. 435(10)(b) of the Insolvency Act 1986, where the subsidiary is alleged to have made a preferential payment in the context of a wider transaction leading to the sale of its shares. The decisions in Re Kilnoore Ltd, Unidare plc v Cohen [2005] EWHC 1410 (Ch) and ‘Box Clever’ Granada UK Rental & Retail Ltd v the Pensions Regulator [2019] EWCA Civ 1032 were considered.

Tiran Nersessian acted on behalf of the successful liquidator. The full judgment can be found here

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