In June 2023 Chief ICC Judge Briggs heard an application for dismissal of a petition in circumstances where two supporting creditors ((1) White Oak Finance Europe (non-levered) Ltd (White Oak) and (2) NPS 40 GP Ltd) had applied to take carriage of the petition pursuant to Rule 7.17 of the Insolvency (England & Wales) Rules 2016.
The original petitioning creditor, Citibank NA London sought dismissal of its petition at a hearing on 28 June 2023. The debtor company, Liberty Commodities Limited, agreed to the dismissal but disputed the substitution applications of White Oak and NPS.
Isabel Petrie, instructed by Akhil Markanday and Edward Gardner of Bryan Cave Leighton Paisner LLP, acted for NPS, the creditor whose application for substitution was successful on 28 June 2023.
Although satisfied that it was correct to order substitution in favour of NPS at the hearing, Chief ICC Judge Briggs reserved judgment on more general questions concerning the correct practice on Rule 7.17 applications. That judgment has now been handed down and a full copy can be found here.
Chief ICC Judge Briggs’ decision provides clarity and guidance on the approach to substitution applications, which he confirms should be dealt with as follows: “Substitution First, Standing Later”.