Battersea Power Station was at the centre of a rare application to Jersey’s Royal Court in December 2011.
The Jersey court has agreed to request that four Jersey companies, which were the key borrowing entities involved in the planned redevelopment of the Battersea Power Station site, be put into administration by the High Court of England and Wales. The applicants, Bank of Scotland PLC and the Governor and Company of The Bank of Ireland, were represented by Marcus Pallot, a partner in the insolvency and litigation group at Carey Olsen, instructed by Linklaters.
It was necessary to apply for the request to be made to the English court to trigger that court’s jurisdiction and also because Jersey has no administration regime; so there is no opportunity to appoint an administrator in Jersey to investigate a “work out solution” or take the advantage of a moratorium on proceedings.
Advocate Pallot said: “The use of the letter of request route to put Jersey companies into an administration procedure, under the jurisdiction of the High Court, is extremely important in the commercial context and one which I see becoming more commonplace in the future”.
The four Jersey companies had borrowed money from the two applicant banks. None of the financial details, or amounts involved, have been made public in the Jersey court judgment.
Advocate Pallot successfully argued that the Jersey Court had the inherent jurisdiction to make the request of the English Court on the basis that it was in the best interests of the creditors and that the High Court was likely to make the orders sought, which it did on 12 December 2011.
This matter was the most substantial of four such cases to go before the Jersey court over the past 10 years and the second in which Advocate Pallot has acted on behalf of the applicants.
The judgment, given in December 2011, was initially private, but is now in the public domain.