Jersey Unreported Judgments

[2007]JRC065

royal court

(Samedi Division)

14^th March 2007 

IN THE MATTER OF THE REPRESENTATION OF WILLIAM TACON IN RESPECT OF MONTROW INTERNATIONAL LIMITED AND LIKOUALA S.A.

Advocate M. J. Thompson for the Representor.

Viscount M. Wilkins.

judgment

the COMMISIONER:

1.        This is an application by William Richard Tacon ("Mr Tacon"), for his appointment by the High Court of Justice of the British Virgin Islands, ("BVI"), as provisional liquidator of certain companies to be recognized in Jersey. His appointment in the BVI is until 2^nd April, 2007, whereupon he will return to Court in that jurisdiction.

2.        There is in the bundle a very detailed affidavit from Mr Tacon with voluminous exhibits, and he tells how he was appointed provisional liquidator to companies, Montrow International Limited and Likouala S.A..  The tortuous affairs concern the Republic of the Congo and its apparent scheme to wash millions of U.S. dollars in order to defraud creditors.

3.        There are judgments in the Commercial Court in London, but nothing here, and it appears that there is a near certainty in this jurisdiction that unless the relief requested is granted, such assets as there may be here will move out of the jurisdiction very quickly. That is why a gagging Order was imposed by the BVI Court, until 12^th March, 2007, that is the reason for this urgent application.

4.        The learned Viscount appeared before us and strongly criticized the fact that there was no Letter of Request from the BVI Court. The application is akin to an order made under Article 49 of the Bankruptcy Désastre (Jersey) Law 1990, and the Viscount gave us two cases, the Representation of Meade Malone, on the 7^th June, 2005, which was an application from the BVI, on a question of Bankruptcy and the Representation of Louise Britton on the 7^th November, 2001, and both those applications contained a Letter of Request, one from the BVI, the other from the High Court of Justice in England and Wales. That is a country designated in the Article, the BVI is not.

5.        Although Mr Tacon is an authorised licensed insolvency practitioner in the BVI and is a partner of an accounting firm there, we were not happy to proceed without a Letter of Request, but we did impose immediate injunctions and Advocate Thompson who was instructed to appear at short notice said that he would contact his clients in the BVI overnight. Today we have a Letter of Request from both companies, dated yesterday.

6.        We can see no reason why, in the exercise of our discretion, we should not grant assistance to the provisional liquidator. We note the undertakings made by him to pay the reasonable costs of witnesses in complying with this Order, in addition to the reasonable costs that may have occurred within this jurisdiction. Should it be necessary to conduct a hearing, and not without the leave of the Court, use any documentation or information other than for the purpose of liquidation proceedings in the BVI.

7.        Mr Thompson, we grant you the application that you request, in its terms.

Authorities

Bankruptcy Désastre (Jersey) Law 1990.