ReSolve obtains a novel Order in cross-border appointment - Resolve Group UK

ReSolve obtains a novel Order in cross-border appointment

Resolve Group UK

ReSolve obtains a novel Order in cross-border appointment

ReSolve was appointed to realise the German assets of Karen Millen Deutschland GmbH (the Company) after the Karen Millen brand and certain assets in the UK were acquired by online retailer Boohoo.

This appointment, on 11th September 2019, came as a result of a German court ruling that an English administrator should be appointed, as the Company’s centre of main interests were deemed to be in England and Wales where its board was located.

ReSolve recognised the need for a local administrator and applied to have one appointed, under the secondary proceedings. A secondary German administrator was accordingly appointed by the German courts in order to deal with German creditors.

In the period leading up to the proceedings in Germany, the joint administrators were concerned that funds held to the credit of the Company in its German bank account might be dissipated. It was, therefore, requested these funds be repatriated into the UK administrator’s custody.

It was also recognised that legal authority would be required to transfer funds to the German administrator to enable distributions to be made to the German creditors, who were mainly Company employees.

Working with Moon Beever LLP an application was made to the UK Companies Court to enable this and on 27th April 2020 an Order was granted giving permission for the joint administrators to make a distribution to unsecured creditors of Karen Millen Deutschland GmbH by making a payment to the German Administrator.

This is believed to be a novel Order and the complex case has proved a fantastic example of cross-border cooperation between officeholders. ReSolve is proud to have been part of achieving this solution, enabling distributions to be made to German creditors, primarily Company employees.

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