Judgment creditors should be aware that the English Court of Appeal has given guidance on the proper construction of s423 Insolvency Act 1986 (transactions defrauding creditors)1. This guidance will be relevant where it is alleged that a debtor has transferred assets through corporate structures in order to defeat the claims of creditors, including judgment creditors.
In essence, the Court may grant relief in respect of a transaction entered into at an undervalue by a debtor for the purpose of either putting assets beyond the reach of its creditors or otherwise prejudicing the interests of creditors. Applications for relief can be made not only by insolvency officeholders (liquidators and administrators of a corporate debtor and bankrup…
Read the full article at: https://www.mayerbrown.com/en/perspectives-events/publications/2023/09/transactions-defrauding-creditors-the-use-of-corporate-structures-to-defeat-creditor-claims