5-Apr-07
START DATE
END DATE
5-Apr-07
Loral Space & Communications Ltd.
COURT:
LAW:
JUDGE(S):
CLAIMANT'S LAWYER:
DEFENDANT'S LAWYER:
Supreme Court of Bermuda
Companies (Winding-Up)
Kawaley J.
N/A
Mr. Larry Mussenden (Attride-Stirling & Woloniecki)
FACTS OF THE CASE:
This case involved the winding-up of Loral Space & Communications Ltd., a Bermuda-registered company, following a Chapter 11 reorganization in the United States. The Joint Provisional Liquidators (JPLs) sought their appointment as permanent liquidators to conclude the winding-up process. The case raised issues about whether a company?s affairs could be wound up without first holding creditor and contributory meetings as required under the Companies Act 1981. The JPLs argued that the US Chapter 11 Plan had already settled all creditor claims, rendering the statutory meetings unnecessary. Mr. Larry Mussenden (Attride-Stirling & Woloniecki) N/A The Court appointed the JPLs as permanent liquidators without requiring the usual creditor and contributory meetings, citing the need for efficiency and compliance with the Chapter 11 Plan. JPLs appointed as permanent liquidators; statutory requirements for creditor meetings bypassed. Joint Provisional Liquidators (JPLs) (1) Can a Bermuda court appoint permanent liquidators without a creditor vote? (2) Should the Chapter 11 Plan override Bermuda?s statutory winding-up process? (3) Was the liquidation process consistent with Bermuda insolvency law? Clarifies the power of Bermuda courts to accommodate international bankruptcy procedures and streamline liquidation processes for companies under foreign restructuring plans. Companies Act 1981 (Bermuda), US Bankruptcy Code (Chapter 11), Rules of the Supreme Court (RSC) Order 18/19 Cambridge Gas Transport Corp v The Official Committee of Unsecured Creditors [2006] 3 WLR 689, Re Titan Petrochemicals Ltd. [2013] Bda LR 76, Re Demaglass Holdings Ltd [2001] BCLC 633 wix:document://v1/ugd/71f0ba_d818897f8e8c44ca80daf40da55aed4e.pdf/SC0704_Loral-Space--n--Communications-Ltd._CB_87-2007-SC-Bda-26-W-Up-18-April-2007.pdf
SUMMARY:
(1) Can a Bermuda court appoint permanent liquidators without a creditor vote? (2) Should the Chapter 11 Plan override Bermuda?s statutory winding-up process? (3) Was the liquidation process consistent with Bermuda insolvency law?
OUTCOMES:
JPLs appointed as permanent liquidators; statutory requirements for creditor meetings bypassed.
RULED IN FAVOUR OF:
Joint Provisional Liquidators (JPLs)
PLAINTIFF/CLAIMANT
DEFENDANT:
DURATION (DAYS):
ISSUES:
RELEVANCE:
RULING:
RULING TYPE:
CASES CITED:
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Loral Space & Communications Ltd.
This case involved the winding-up of Loral Space & Communications Ltd., a Bermuda-registered company, following a Chapter 11 reorganization in the United States. The Joint Provisional Liquidators (JPLs) sought their appointment as permanent liquidators to conclude the winding-up process. The case raised issues about whether a company?s affairs could be wound up without first holding creditor and contributory meetings as required under the Companies Act 1981. The JPLs argued that the US Chapter 11 Plan had already settled all creditor claims, rendering the statutory meetings unnecessary. Mr. Larry Mussenden (Attride-Stirling & Woloniecki) N/A The Court appointed the JPLs as permanent liquidators without requiring the usual creditor and contributory meetings, citing the need for efficiency and compliance with the Chapter 11 Plan. JPLs appointed as permanent liquidators; statutory requirements for creditor meetings bypassed. Joint Provisional Liquidators (JPLs) (1) Can a Bermuda court appoint permanent liquidators without a creditor vote? (2) Should the Chapter 11 Plan override Bermuda?s statutory winding-up process? (3) Was the liquidation process consistent with Bermuda insolvency law? Clarifies the power of Bermuda courts to accommodate international bankruptcy procedures and streamline liquidation processes for companies under foreign restructuring plans. Companies Act 1981 (Bermuda), US Bankruptcy Code (Chapter 11), Rules of the Supreme Court (RSC) Order 18/19 Cambridge Gas Transport Corp v The Official Committee of Unsecured Creditors [2006] 3 WLR 689, Re Titan Petrochemicals Ltd. [2013] Bda LR 76, Re Demaglass Holdings Ltd [2001] BCLC 633 wix:document://v1/ugd/71f0ba_d818897f8e8c44ca80daf40da55aed4e.pdf/SC0704_Loral-Space--n--Communications-Ltd._CB_87-2007-SC-Bda-26-W-Up-18-April-2007.pdf