BRITISH VIRGIN ISLANDS
COMPANIES – WINDING UP – TRANSACTION APPROVAL PROCEEDINGS – DUTIES OF LIQUIDATOR
The Claimant Farnum Place LLC applied under Section 273 of the Insolvency Act, 2003 for an order compelling Fairfield Sentry (by its Liquidator) to seek the approval of the court of the terms and conditions of a contract entered into between Sentry and Farnum (the “Trade Confirmation”) and to take the necessary steps to bring to fruition certain other conditions to which the contract is expressed to be subject. The terms of the Trade Confirmation is governed by New York law.
The Liquidator maintained that he either never has been or else is no longer bound by the Trade Confirmation and that he is entitled to walk away because of the existence of a “fiduciary out” clause in the Trade Confirmation.