Vol 18 (2021) - Issue 3

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Re Fortuna Fix Limited (In Administration) [2020] EWHC 2369 (Ch)

Synopsis
The Court considered applications by the joint administrators of Fortuna Fix Limited (in administration) ('Fortuna') for directions: (i) following the rejection of their proposals by Fortuna's majority creditor; and (ii) upon that majority creditor's request to requisition a qualifying decision procedure to consider replacing the joint administrators. The Court held that it had jurisdiction to:
– authorise the implementation of a rejected proposal despite opposition from a majority of creditors; and
– direct against holding a creditors' meeting.

However, on the facts the Court declined to exercise its jurisdiction in each case as it determined there were no real prospects of achieving any of the statutory purposes of administration. Instead, the Court, relying on its inherent jurisdiction to wind up a company without a winding-up petition, ordered an adjournment of 14 days, following which it would decide on the windingup of Fortuna.