Fee Estimates In Liquidation: The Importance Of Getting In Early

The recent decision from the Guernsey Royal Court of DM Property Holdings (Guernsey) Limited (in Liquidation)¹ is of fundamental importance to Guernsey insolvency practitioners ("IP") as it provides cautionary guidance on the practical implications of Practice Direction No. 3 of 2015 ("Practice Direction").  This Practice Direction provides for the submission of fee estimates by liquidators and administrators in advance of applications to wind up companies or place them into administration and for those estimates to be varied if additional information comes to light.  The implications are that an accurate revised fee estimate must be submitted in a timely manner if such fees are to be recoverable where there is information or circumstances which was previously unknown or "out of the ordinary".  If the information or circumstances could have been envisaged or was already known by the Liquidator/Administrator then there is a danger that the Court will not permit the