The relationship between arbitration clauses and winding up
proceedings is a contentious issue in many jurisdictions and the
debate shows no sign of abating. In the BVI, a recent case has
further clarified the effect of an arbitration agreement on
creditor's winding up proceedings pursued on the basis of a
company's insolvency.
In a recent case, , Rangecroft Ltd v Lenox International
Holdings Ltd1, the BVI Commercial Court has
further clarified the effect of an arbitration agreement on
creditor's winding up proceedings pursued on the basis of a
company's insolvency.
The basic facts of this case were that the creditor, Rangecroft
Ltd, made an application for the appointment of a liquidator to the
debtor, Lenox International Holdings Ltd, on the basis that the
debtor was unable to pay its debt as they fell due. The debtor
disputed that the debt was repayable and brought cross claims
against the creditor.
