s.281 (3) IA86 and trusts considered - Soutzos v Asombang & Ors [2010] EWHC 842 (Ch) (23 April 2010)

Mr Justice Newey (pictured - whose MG Rover Report is critiqued in the latest Private Eye - see also the "Farepak Convention" article) has recently handed down a huge judgment in the case of Soutzos v Asombang & Ors [2010] EWHC 842 (Ch). The case concerns a lengthy judicial consideration of property development financing in the greater London area. The substance of the case comes down to a couple of specific points regarding some rather substantial loans, totaling some £620,000. As the learned judge states:
With specific regard to the bankruptcy the learned judge noted:

    "The debt due to Mr and Mrs Penna arose in the course of a series of written transactions between them and [Mr Asombang] between 2001 and 2004 in which Mr and Mrs Penna advanced moneys to the debtor to finance the debtor's business as a property developer, against the debtor's promises to repay the same together with agreed fees and interest upon the several dates and the terms set out therein."
    At about the end of February 2008, Dr Soutzos, by his solicitors, himself served a statutory demand on Mr Asombang. A similar statutory demand was served on 29 February 2008 on Miss Dawkins, but she applied to have the demand set aside.
    On 30 April 2008 Mr Asombang was adjudged bankrupt on the petition which had been presented by Mr and Mrs Penna and Mr Kelly."
The case all contains a discussion of the place of trusts in insolvency. Happy reading!

Picture Credit: http://2.bp.blogspot.com/_YrPhWhp-AW0/S0NAqY2fMNI/AAAAAAAAA1c/J8Xv4VlPfVc/s400/Guy_Newey-39584.jpg