Procedural Updates

On 1 July 2020, the Administrators sought declarations from the Supreme Court of Gibraltar (the Court) on the operation of certain provisions in the Gibraltar Insolvency Act 2011 (the Act) which determine the manner in which the sums due from each party to the other will be calculated and, specifically, how sums due from one party are to be set-off against the sums due from the other party. In a judgment dated 9 July 2020, the Court held that:

1. The rules of set-off contained in sections 135 to 140 of the Act apply in an administration where the administrators first make a distribution under section 72(1) of the Act.
2. These provisions mean that the account for set-off purposes is taken as at the date on which the statement of distribution of dividend is issued to creditors in accordance with rule 118 of the Insolvency Rules 2014.

The Court has also provided that each creditor and debtor of the Company is able to apply to the Court to challenge those declarations.

The Court's judgment is here: Link

The Court’s order is here: Link