In the matter of Petropavlovsk plc (in administration)

On an urgent application under paragraph 63 of Schedule B1 to the Insolvency Act 1986, the court may give administrators liberty to proceed with a proposed sale of the company’s business or assets. The order may also address receipt of consideration and the treatment of application costs. Where urgency requires an immediate order, the court may make the order forthwith and give written reasons subsequently.

The joint administrators of Petropavlovsk plc applied on 27 July 2022 for directions under paragraph 63 of Schedule B1 to the Insolvency Act 1986. They sought liberty to enter into and perform a negotiated share sale and purchase agreement with UMMC-Invest for the sale and purchase of the company’s assets.

The application was heard urgently on 29 July 2022. The Office of Financial Sanctions Implementation was notified and provided a letter, but did not appear. The court granted the application immediately, with detailed written reasons to follow.

The application was granted. The court considered the urgency of the application sufficient to make an order forthwith, with written reasons to be handed down subsequently.

1. The joint administrators were given liberty, pursuant to paragraph 63 of Schedule B1 to the Insolvency Act 1986, to enter into and perform, and to procure Petropavlovsk plc to perform, the share sale and purchase agreement negotiated with UMMC-Invest.
2. The administrators were given liberty to receive any cash consideration payable under the agreement into their insolvency estate bank accounts with any UK commercial bank.
3. The costs of and associated with the application were directed to be treated as an expense in the administration.
4. Subject to further order, consequential matters arising from the order, including any application for permission to appeal, were adjourned to the hand down of the judgment containing the written reasons.

The supplied judgment records the operative decision and order. It states that a longer substantive judgment setting out the reasons was intended to follow later that week.