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ARTICLE · 24 MAY 2010

Insolvency Set-Off in Administration

CMS Cameron McKenna Nabarro Olswang
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A recent case in the Court of Appeal ("CA") has provided some useful guidance on the interpretation of rules 2.85 and 2.105 of the Insolvency Rules 1986 ("IR") in the context of insolvency set-off.

United KingdomInsolvency/Bankruptcy/Re-Structuring
Duncan Aldred
Duncan Aldred
Rebecca McMillan
Rebecca McMillan

Case: Re Kaupthing Singer and Friedlander Limited (In Administration)

A recent case in the Court of Appeal ("CA") has provided some useful guidance on the interpretation of rules 2.85 and 2.105 of the Insolvency Rules 1986 ("IR") in the context of insolvency set-off. Specifically, the CA ruled that, where cross-claims exist as between a company in administration and one of its creditors in respect of a future debt, once insolvency set-off has taken effect, the balance due to the company is not also to be discounted to present value, but instead, must be paid at its full value.

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Case: Re Kaupthing Singer and Friedlander Limited (In Administration)

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