Key Points
- COMI of Jersey companies held to be
in England and Wales
- Argument of improper motive generally insignificant where
purpose of administration can be achieved
The Facts
Three Jersey companies were put into English administration on
the basis that their COMI was within this
jurisdiction. Each company owned a shopping centre in various
cities in the UK and the shopping centres were managed by an
English incorporated entity. The secured lender appointed
administrators who then applied to court for a declaration that
their COMI was in England and accordingly
their appointments were valid.
The sole shareholder and directors cross-appealed to have the
administrators' appointment terminated on the grounds of
improper motive, arguing that it was intended to thwart the
litigation commenced by the companies against the secured lender
two years prior to the appointment of administrators.
