Jersey Unreported Judgments

Bankruptcy - Letters of Request

[2022]JRC242

Royal Court

(Samedi)

8 November 2022

REPRESENTATION OF JOANNE SARA WRIGHT AND ANDREW WILLIAM KNOWLES

IN THE MATTER OF RICHARD ANDREW YEOWART

AND IN THE MATTER OF ROBERT DAVID HARRY HOPKINSON

AND IN THE MATTER OF ARTICLE 49 OF THE BANKRUPTCY (DÉSASTRE) (JERSEY) LAW 1990 AS AMENDED

Advocate J. M. Dann for the first Representors.

ex tempore judgment

the COMMISSIONER:

1.        The Court is considering two applications by Joanne Wright and Andrew Knowles, (the "Joint Trustees") for recognition in this jurisdiction of their appointment by the High Court in London as trustees in bankruptcy of Richard Andrew Yeowart and Robert David Harry Hopkinson respectively.  The application is made pursuant to Article 49 of the Bankruptcy (Désastre) (Jersey) Law 1990 ("the 1990 Law"). 

2.        The background is as follows: Mr Yeowart and Mr Hopkinson were for many years the directors of a number of English companies ("the Arena companies").  The Arena companies were placed in administration on various dates in November 2021.  The administrators consider that the creditors of the Arena companies have been the victims of a huge fraud perpetrated by Mr Yeowart and Mr Hopkinson, (together "the Debtors").  The fraud is estimated to be in the region of £250 million.  On 26^th January 2022 the Arena companies obtained summary judgment in the High Court against the Debtors who were ordered to make an interim payment of £100 million together with costs of £500,000.  The Debtors did not pay this sum and were both adjudged bankrupt in the High Court on 22^nd February 2022, with the Joint Trustees being appointed as trustees in bankruptcy of each of the Debtors.  Both the Debtors have absconded from the United Kingdom and have not cooperated with the Joint Trustees.  Mr Hopkinson has been arrested in France and is in custody there.  Mr Yeowart's whereabouts are unknown.  The Serious Fraud Office is investigating.

3.        The Joint Trustees have reason to believe that the Debtors may have assets in Jersey, although their information is limited.  There is some evidence that Mr Yeowart has a bank account in Jersey and that the Arena companies have engaged in various transactions with a local fiduciary services provider.  Unsurprisingly, the Joint Trustees have been unable to obtain any information from these local entities unless their appointment is recognised in Jersey. 

4.        Article 49 of the 1990 Law provides as follows, so far as relevant:

"49      Assistance for other courts in insolvency matters

(1)     The court may, to the extent it thinks fit, assist the courts of a relevant country or territory in all matters relating to the insolvency of a person, and when doing so may have regard to the extent it considers appropriate to the provisions for the time being of any model law on cross border insolvency prepared by the United Nations Commission on International Trade Law.

(2)     For the purposes of paragraph (1), a request from a court of a relevant country or territory for assistance shall be sufficient authority for the court to exercise, in relation to the matters to which the request relates, any jurisdiction which it or the requesting court could exercise in relation to these matters if they otherwise fell within its jurisdiction.

(3)     ...

(4)     In this Article "relevant country or territory" means a country or territory prescribed by the Minister."

England and Wales is a 'relevant country' prescribed by the Minister for these purposes.

5.        The Court has received two letters of request from the High Court, one in respect of each Debtor.  The letters request that the appointment of the Joint Trustees be recognised and given effect to in this jurisdiction and that they be authorised to examine various persons within this jurisdiction with a view to getting in the assets of each of the Debtors in the jurisdiction.

6.        The letters also request that if the need arises the Joint Trustees may make a further application to this Court for an order that property and documents may be seized and that any persons unwilling to attend upon the Joint Trustees to give information may be ordered to do so.  However, those steps are to be taken in the future only if the need arises. 

7.        For the moment the Joint Trustees need to obtain information with a view to getting in any assets.  In accordance with good practice the Joint Trustees have liaised with the Viscount, who has confirmed that he has no observation on the application. 

8.        There is a strong public interest in enabling trustees in bankruptcy of a relevant jurisdiction to obtain information about and gather in assets in this jurisdiction.  We have no hesitation in concluding that it is appropriate to accede to the letters of request in this case. 

9.        Accordingly we make an order substantially in the terms of the draft produced to us this morning. 

Authorities

Bankruptcy (Désastre) (Jersey) Law 1990.