Guernsey: insolvency - court grants application to pool assets of two insolvent companies

The Royal Court (Ordinary division) gave judgment earlier this month in In the matter of Huelin-Renouf Shipping (Guernsey) Limited (in liquidation) (case 46/2015). A copy of the decision is available here (but note that registration - free of charge - may be required to access the decision). This is an important decision - now the leading authority - in which Deputy Bailiff McMahon held that it was open to him to grant an application by liquidators to transfer the assets and liabilities arising from the liquidation of a Guernsey company into the insolvent estate of a Jersey company. The purpose was to consolidate the assets and liabilities of the two companies, the affairs of which were heavily interwoven, and to pay the creditors from the pooled assets.

The decision also provides a good illustration of the way in which Guernsey's insolvency law is shaped by developments in other jurisdictions including near neighbour Jersey and, further away, England and Wales.