Vol 19 (2022) - Issue 2

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Re VST Enterprises Ltd; Interactive Digital Systems Ltd v VST Enterprises Ltd [2021] EWHC 887 (Ch)

Synopsis
The High Court considered an administration application brought by a contingent creditor of VST Enterprises Ltd (the 'Company'). The Company's insolvency and whether it would be appropriate for the Court to exercise its discretion under para. 13 of Schedule B1 of the Insolvency Act 1986 to make an administration order were both disputed. While the Court had little difficulty in finding the Company was balance sheet insolvent, it declined to make an administration order on the facts, particularly focusing on the contingent nature of the liability owed by the Company to the creditor and the terms governing the liability.