Discharging An Administration Order

Carey Olsen's restructuring and insolvency team has achieved a significant success in securing an order for the discharge of an administration order made pursuant to the Companies (Guernsey) Law, 2008, as amended (the "Companies Law"), on the basis that the company, Mitco Retail Six Limited ("MR6"), could survive as a "going concern". Advocate David Jones and associate Luke Sayer acted for the administrators, Michael Bane and Alan Hudson of Ernst & Young LLP.

The Facts

On 19 June 2014, MR6 was placed into administration on the basis it was unable to pay its debts as they fell due. MR6's creditors consisted of: (a) a multimillion pound historical secured loan from Nationwide Building Society (subsequently assigned to a third party); (b) shareholder debt; and (c) other unsecured creditors. The secured lending was enforced by the appointment of administrators to MR6 on the basis that administration would facilitate either the survival of MR6 as a going concern or