Re Peak Hotels and Resorts Ltd (in liquidation); Crumpler and another v Candey Ltd

Insolvency – Liquidation. The Companies Court ruled on an application by the joint liquidators of a company to establish whether certain sums of money were subject to charges granted by the company to the respondents, its former solicitors, to secure the latter's fixed fee for work done in international litigation concerning the company. The court held that money paid into court by the company was subject to a charge granted to the solicitors, that the charges over that money, and money formerly held by a bank on trust for the company, were floating charges, and that the conditions of s 245 of the Insolvency Act 1986 had been met in relation to the charges, such that the remaining issue was the value of the services supplied by the solicitors, after entry into the relevant charging deed, which was secured, and whether it was less than the fixed fee charged in the case. The question of valuation, under s 245 of the Act would be dealt with at a later date.

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