Astra Resources plc v Credit Veritas USA LLC

Insolvency – Practice. A company applied for an injunction to restrain a creditor (CV) from presenting a winding-up petition on the basis that the debt claimed by CV in a statutory demand was disputed on substantial grounds and that the petition would amount to an abuse of process. The Companies Court, in dismissing the application, held that the company had been unable to demonstrate a genuine dispute on substantial grounds as regards CV's claim for unpaid retainer fees of US$600,000. On the facts, it would not be an abuse of process for CV to present a petition to wind-up the company based on that debt.

Category: