CGL Realisations Limited

We last wrote about CGL Realisations Limited (previously known as Comet Group Limited) when Geoffrey Carton-Kelly of FRP, one of the company’s Liquidators, successfully challenged the repayment of an intercompany loan as a preference.

This resulted in the High Court ordering Fnac Darty, the company’s former parent, to pay a judgment of £89.6mn to the Liquidator.

Shortly thereafter, the Court ordered Fnac Darty to pay £22.3mm in interest and £2.6mm in costs, amounting to a total award of £114.5mm. This is thought to be the largest unfair preference award ever made by the High Court.

Fnac Darty sought to appeal, and the High Court granted leave on most, but not all, of the grounds requested. The appeal is likely to be heard by 12 July 2023.

An application for permission to appeal on the grounds not granted at first instance appears to be pending before the Court of Appeal at this time.

Notwithstanding the appeal, Fnac Darty have reportedly been making payments towards the judgment, with the Liquidator most recently securing an order from the High Court releasing the third payment towards the debt.

Nicholas Edwards of Deloitte, Neville Khan of Blandford Capital (previously of Deloitte), Christopher Farrington of ReSolve (previously of Deloitte) and Ian Wormleighton of Teneo (previously of Deloitte) have also acted as Joint Liquidators for the company, while Geoffrey Carton-Kelly of FRP was appointed in 2018 to investigate and potentially pursue the claim against Fnac Darty. He has been assisted by Jones Day, and the litigation has been partially financed by Litigation Capital Management.

The Joint Liquidators’ most recent Progress Report can be found HERE.