Charles Samek QC, instructed by Richard Brown at Carey Olsen, appeared today in the BVI Commercial Court before the Hon. Justice Adrian Jack for the applicant, Blackbrook Asset Management Limited (in administration) (BAML), on its application for the appointment of joint liquidators over High Elms Capital Limited (HEC). The background to the application was that as a direct result of a series of short trades in US Treasuries entered into by BAML between February and March 2020, BAML had incurred liabilities to various counterparties of approximately US$ 250 million. By virtue of the fact that BAML had placed the trades on behalf of HEC, BAML had the benefit of an indemnity from HEC in respect of its liabilities. BAML was thus a creditor of HEC in the amount of the liabilities which it had incurred in respect of the trades. Justice Jack agreed on the evidence that HEC was balance-sheet insolvent and made an order for the appointment of joint liquidators over HEC pursuant to ss. 159 and 162 Insolvency Act 2003 (BVI).
