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In the insolvency and restructuring sector there are a number of presumptions; examples are, insolvency is presumed in a transaction at an undervalue if the parties are ‘connected’ (see ‘Connected Parties’). Also, in a preference under section 239 Insolvency Act 1986 ‘desire’ is presumed if the parties are ‘connected’, unless sufficient evidence can be introduced to rebut the presumption.
Also, with a company’s centre of main interests (COMI) it is presumed to be the place the company is legally registered (unless evidence can be brought to prove otherwise, which is ‘rebutting the presumption’).
[See ‘Rebutted’, ‘Connected Party’, ‘Transaction at an Undervalue’, ‘Preference’, ‘Insolvency Act’, ‘Centre of Main Interests’ and ‘COMI’.]
Prima Facie is a Latin phrase meaning ‘at first sight’, or ‘first look’.
An example would be, “the company appears to be insolvent prima facie.” This would be, the signs are that the company are insolvent, without knowing the details of the books and records.
A prima facie case is a cause of action or defence that is sufficiently established by a party’s evidence to justify a verdict in their favour, provided such evidence is not ‘rebutted’ by the other party.
[See ‘Presumption’, ‘Insolvent’ and ‘Rebutting’.]
The principal duty of a Liquidator and a Trustee in Bankruptcy is to take in the assets of the insolvent estate, value them, sell them and maximise the realisations to creditors.
The objective of an Administrator is to achieve one or more of the three purposes set out in paragraph 3 of Schedule B1 of the Insolvency Act 1986. In doing this the Administrator acts for all creditors, not just the entity that appointed them. They are an officer of the court, whether or not appointed by it, and so must comply with the duties applicable to officers of the court.
