Désastre proceedings are a
Court initiated insolvency procedure that is used
to liquidate an insolvent company. The purpose of
désastre proceedings is to facilitate the orderly
and fair distribution of the company's assets by treating the
claims of all unsecured creditors equally and rateably.
An application for a declaration may be made
by:
- a creditor owed a liquidated sum by a company
in excess of the prescribed amount (currently £3,000);
- the company; or
- the JFSC.
Désastre proceedings are the only Jersey
insolvency procedure for an insolvent company that
may be started by a creditor. So, where a creditor wants to
liquidate a company to recover a debt owed to it, its only option
is to apply to the Court for an order that the
company's assets be declared en désastre
(in disaster).
