The Applicant’s solicitors held sufficient funds to discharge all of Diamond’s liabilities and provide £1.5m in working capital.
A creditor opposed rescission of the winding up order as Diamond was not solvent without the often late financial support of its overseas owner, the company had been poorly managed (by a manager who was a disqualified director); that this was the sixth petition against Diamond in 2 years and there was no UK based director. However, the opposing creditor also had an interest in Diamond’s lease being forfeited, while all other creditors supported rescission of the order.
The court exercised its discretion to rescind the winding up order on undertakings from the Company and its shareholder that all creditors are paid in full; the funder would not seek repayment of his loans until all other liabilities are discharged; a UK based director independent of the shareholders is appointed within 3 months and these undertakings are recorded in Diamond’s annual financial statements.
In the matter of Diamond Hangar Limited [2019] EWHC 224