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England and Wales: Provisional liquidators’ asset sale powers and the court’s jurisdiction to ratify unauthorised acts retrospectively—Aerovías del Continente Americano v Versilia Solutions

Published on: 02 March 2026

Published by a LexisNexis Restructuring & Insolvency expert
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Aerovías Del Continente Americano S.A. and other companies v Versilia Solutions Ltd (in provisional liquidation) (acting by Michael Leeds and Kristina Kicks as Joint Provisional Liquidators) [2026] EWHC 282 (Ch) What are the practical implications of this case?

The ruling underlines that where provisional liquidators anticipate, or can reasonably foresee, taking particular actions, they must check that the appointing order grants the necessary authority to act. Here, the office-holders applied for a declaration confirming that a disposal of the company’s assets they had carried out fell within their remit; alternatively, they asked the court to approve the transaction after the event. Although the court concluded, interpreting the appointment order, that they did possess authority to complete the sale, it stressed that if a sale (or any comparable measure) might be necessary, the order should contain a clear, specific power enabling it. If such wording is missing, provisional liquidators should seek a variation of the order and/or obtain directions before finalising a sale or, indeed, undertaking any step not explicitly authorised. Prudent practitioners should therefore anticipate potential tasks and secure express authority in advance before acting on such matters...

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