30 June 2016
Brown and another, the joint administrators of Loanwell Ltd v Stonegale Ltd [2016] UKSC 30, [2016] All ER (D) 133 (Jun)
The Supreme Court held in dismissing the appeal that the purpose and effect of the transactions between the group of companies prior to administration was to divert assets away from the companies’ creditors contrary to s 242 of the Insolvency Act 1986. There had been no reciprocity between the disposals and the earlier payment made to the bank. That they were gratuitous alienations was plain and obvious.
