The Isle of Man High Court recently approved the issue of a formal letter of request to the English High Court in connection with a company incorporated in the Isle of Man. In assessing whether it was appropriate to issue the letter of request, the court considered all circumstances of the case, including the interests of the claimant, the defendant, the creditors and the public interest.
In a recent decision the High Court considered the application of the principles of forum non conveniens (ie, that proceedings should be conducted in the most convenient or natural forum) and universalism in cross-border insolvency matters. The ruling is another example of the Isle of Man court's determination to take a global view in accordance with the principles of comity.
The liquidators of the insolvent bank Kaupthing Singer & Friedlander (Isle of Man) Limited (in liquidation) have won an important victory in the Isle of Man Appeal Court, overturning a first instance judgment which was delivered in favour of Australian supermodel Elle Macpherson. Macpherson had previously won a landmark victory in the Isle of Man High Court in a case in which the court cited an equitable principle dating back to 1675.
Australian supermodel Elle Macpherson recently won a landmark victory in a High Court insolvency case by citing an equitable principle dating back to 1675. The case highlights that insolvency and banking practitioners should think twice before entering into lending arrangements with individuals which interpose companies that belong to those individuals.
In recent times it has become increasingly common to consider taking action to wind up a debtor company. However, initiating this procedure on the Isle of Man must be given plenty of thought. The process can be time consuming and costly if it is not approached in the right way, and it is essential to be as prepared as possible before embarking on such action.
In difficult economic times, fear of the effects of a downturn in the economy and the prospect of business failure may lead some to consider transferring property and assets in an attempt to place them beyond the reach of claims of creditors, a trustee in bankruptcy or a liquidator. Isle of Man law provides that transactions undertaken with fraudulent or improper intentions may be set aside.