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Jurisdiction(s):
United Kingdom

Galer v Mond [2021]: High Court upholds administrator’s appointment; overseas statutory declaration before English solicitor valid; assignment effective; no full-advance condition; unparticularised independence concerns rejected (England and Wales)

Published on: 13 September 2021

Published by a LexisNexis Restructuring & Insolvency expert
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Article summary

Galer v Mond (administrator of SFPL Ltd) and another [2021] EWHC 1952 (Ch), [2021] All ER (D) 110 (Jan)

What are the practical implications of this case?

Several elements of this ruling turn on the precise wording of the facility agreement and the deed of assignment, so its broader relevance is limited. Even so, the court set out helpful general guidance: in the absence of any evidence of misconduct, it is wholly improper to imply that a particular administrator will fail to fulfil their duties properly. The judge made plain that one cannot obtain a declaration that an administrator’s appointment is invalid by relying on what he described as 'a smokescreen of general allegations'...

What was the background?

SFPL Ltd (SFPL) was incorporated in August 2016 as a vehicle for the acquisition and development of a property in London. There were a number of investors resident in Israel. By January 2017, it was agreed that an Israeli lawyer, Mr Ofek, would act as their representative in relation to the project. In March 2017, SFPL entered a facility agreement under which Mr Ofek would lend £1.2m, comprising the purchase price of the property and the development...

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Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

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