A Jersey company or one of its creditors may wish the company to
be placed into administration in England under Schedule B1 of the
UK's Insolvency Act 1986 (the "Act").
The ability to continue the business of an insolvent company as
a going concern may be in the best interests of the creditors of
the company, particularly where the assets of the company comprise
commercial property in England. In both structured finance and bank
financed transactions where UK real estate is being held through
offshore borrower vehicles for tax and other reasons, there may be
solid income streams even if loan to value ratios have declined
below the level permitted in the transaction documents. Creditors
may not wish for the property to be the subject of a forced sale
into a depressed market and the structure liquidated. While in
Jersey both a désastre and a just and equitable winding up
may permit the business of the company to be continued for a time,
there is no equivalent to an
