Blankstone Sington Limited (In Special Administration), Re
[2024] EWHC 1111 (Ch)
In the matter of Xpress Money Services Limited (in special administration)
9 February 2023
[2023] EWHC 1120 (Ch)
High Court
A company went bankrupt. The court decided it's okay to give back the money to people who are owed it and to stop taking new claims because almost everyone who could have claimed has already done so.
Key Facts
- •Xpress Money Services Limited (XMSL) is in special administration.
- •Joint special administrators applied for orders under Rule 114 of the Payment and Electronic Money Institution Insolvency (England and Wales) Rules 2021 and Regulation 21 of the Payment and Electronic Money Institution Insolvency Regulations 2021.
- •XMSL held relevant funds of $57,425,510 on 28 October 2021.
- •The administrators sought approval for a distribution plan and to set a "hard bar date" for claims.
- •A "soft bar date" of 30 November 2022 had already been set.
- •The administrators sent text messages to approximately 1,623 customers who had not submitted a claim.
- •Only eight claims were received after the soft bar date, totaling no more than $5,411.
Legal Principles
Approval of Distribution Plan
Rule 114 of the Payment and Electronic Money Institution Insolvency (England and Wales) Rules 2021
Setting a Hard Bar Date
Regulation 21 and 22 of the Payment and Electronic Money Institution Insolvency Regulations 2021
Court's discretion in approving Distribution Plan
Re MF Global UK Ltd (In Special Administration) [2013] 1 WLR 3874 and Re Beaufort Asset Clearing Services Ltd [2018] EWHC 2287 (Ch)
Definition of "relevant funds"
Regulation 23 of the Payment and Electronic Money Institution Insolvency Regulations 2021
Outcomes
Approved the Distribution Plan.
The court was satisfied that the statutory precondition in Rule 114(5)(a)(i) had been met, the plan was fair and reasonable, and there were no objections from creditors.
Approved the setting of a hard bar date.
The court was satisfied that the administrators had taken all reasonable measures to identify and contact eligible claimants and that there was no reasonable prospect of further claims.