Jurisdiction(s):
United Kingdom

Re Argentex LLP: limits on FX close‑outs by special administrators; ‘own protection’ clause not engaged; non‑performance/close‑out not expenses of administration (England and Wales)

Published on: 05 January 2026

Published by a LexisNexis Restructuring & Insolvency expert

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Article summary

Re Argentex (Conway v Plass and others) [2025] EWHC 3125 (Ch), [2025] EWHC 3125 (Ch)

What are the practical implications of this case?

On the Expense Question, the decision offers clear direction on when administrators may create liabilities ranking as an expense of the administration while closing out a trading book. The court confirmed that simply taking no action does not generate an expense liability. As for close out, although it required Argentex to take an affirmative step under the contractual terms (an election to close out), that act did not give rise to an expense liability.

Turning to the Termination Question, the judgment addresses a significant point of contractual interpretation in the context of foreign exchange contracts, namely the circumstances in which a provider of foreign exchange services may close out a position for ‘its own protection’—a phrase commonly found in such agreements. The Court concluded that, on the correct construction, the relevant contractual provision could not be relied on by Argentex to shield itself from the economic consequences of entering into the FX contract itself, nor...

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