The Royal Court's latest judgment on an application to
approve liquidators' fees demonstrates a strong and thorough
approach to protecting creditors.
Lt Bailiff Hazel Marshall QC robustly analysed the application
and criticised some elements of the Liquidators' application.
However, the solution was pragmatic and considered the risks
liquidators face of incurring irrecoverable costs as well as the
realities of the market in which insolvency practitioners
operate.
From an insolvency practitioner's perspective, this judgment
demonstrates that liquidators should take care to submit evidence
in support of applications to approve fees, especially when their
application deviates from a course which was previously approved by
the Court in earlier applications.
