Enforceability of charges and validity of appointments under paragraph 14, Schedule B1

On 11th August 2023, Deputy ICC Judge Baister handed down judgment in Re The Sustainable Bathroom Company Ltd [2023] EWHC 2065 (Ch) in which he held that administrators were validly appointed pursuant to paragraph 14 of Schedule B1 because:

(1) notwithstanding that the debenture did not contain any express provision stating when it became “enforceable”, a term was to be implied that it was enforceable following a breach of its terms or the underlying facility (which there had been); and

(2) the notice of appointment of administrators did not contain fundamental defects by reason of (i) the erroneous misstatement that the company was an Article 1.2 undertaking, (ii) the failure to include a paragraph 100(2) statement or (iii) the fact that it contained a statutory declaration made using remote means.

James Morgan KC instructed by Howes Percival LLP acted for the chargeholder and Martin Ouwehand instructed by Mills & Reeve LLP acted for the administrators.

Read the full judgment here.