Vol 19 (2022) - Issue 5

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Re De Weyer Limited (In Liquidation) [2022] EWHC 395 (Ch)

Synopsis
The High Court considered an application brought by the liquidator of De Weyer Limited (the 'Liquidator' and the 'Company' respectively) against Mr Gallagher and Ms De Weyer, the former directors of the Company, for a preference under section 239 of the Insolvency Act 1986 ('IA 1986') and against Mr Gallagher only misfeasance under section 212 IA 1986. The claim was brought in relation to a payment of substantially all of the Company's remaining cash to the directors via another company owned by the directors made when the Company was clearly insolvent. The Court held that the payment did constitute a preference, despite the directors claiming that they were secured creditors of the Company and therefore entitled to receive the payment ahead of unsecured creditors.