Discharge Of An Administration Order - A Pragmatic Approach

Our Restructuring and Insolvency team has had further significant success, recently securing the discharge of an administration order over a Guernsey Protected Cell Company to facilitate its voluntary winding up. The team, led by Guernsey based counsel David Jones and including associate Luke Sayer, acted for local insolvency practitioners Tim Le Cornu and Andrea Harris of KRyS Global.

To our knowledge this is the first time that the Royal Court of Guernsey has ordered that an administration order in Guernsey be discharged so as to facilitate a voluntary winding up.

The Issue

Pursuant to section 377(2)(a) of the Companies (Guernsey) Law, 2008 as amended (the "Companies Law"), during the period for which an administration order is in force, no resolution may be passed or order made for a company's winding up (a moratorium). Section 393 of the Companies Law confirms that a voluntary winding up commences upon the passing of a resolution for voluntary winding up.