5 September 2019
The Court of Appeal has upheld an Order to strike out a US$100m claim brought by an unsecured creditor of the now defunct London Mining Plc against PwC and two of its insolvency practitioners. Fraser Turner brought the claims after London Mining's obligation to pay Fraser Turner a perpetual royalty was not transferred by the administrators to a third-party purchaser as part of a pre-pack administration. The decision is a useful reminder of the principles of contractual interpretation and how the courts will be slow to rewrite the terms of a defective contract. It further highlights the duty of administrators to act in the best interests of the company for the general body of creditors.
Attempting to stave off the inevitable