High Court places JNFX into special administration, sides with majority creditors on office-holder battle

The High Court has placed foreign exchange provider JNFX Limited into a payment institution special administration and appointed Azets partners Louise Brittain and Matthew Richards as joint special administrators, siding with creditors who hold nearly 90% of the company’s liabilities after a contested appointment process. Deputy ICC Judge Baister ruled on 24 November that JNFX is insolvent following its failure to satisfy a judgment of about £3.4 million owed to creditor Akintunde Giwa, confirming that the statutory grounds under the Payment and Electronic Money Institution Insolvency Regulations 2021 had been met.

JNFX, an FCA-regulated authorised payment institution, is required to safeguard client funds and segregate customer money under the Payment Services Regulations. The judge accepted that both insolvency and fairness supported a special administration order, noting concerns raised in earlier litigation about the company’s conduct and the need for an independent investigation. The directors and their counsel did not oppose the appointment of administrators but urged the court to install Opus partners Mark Boast and Allister Manson, citing their prior advisory work for the company and experience with similar institutions.

The issue of who should be appointed ad special administrators quickly became the focal point of the hearing. Counsel for Mr Giwa and Seven-Up Bottling Company Limited pressed for Azets, arguing that their candidates would bring greater independence and noting concerns about the Opus team’s pre-appointment involvement. Both sides raised issues relating to experience, objectivity, and conflict risks, while the FCA expressed a preference for Opus on the basis of cost and familiarity. Judge Baister found neither side’s criticisms decisive and held that both firms were qualified.

With no substantive distinction between the slates, the court relied on creditor preference as the tie-breaker, drawing on authorities such as Med-Gourmet and Oracle, which emphasise creditor primacy when competing administrator candidates are otherwise suitable. Creditors representing approximately 57% by number and 88% by value supported Azets, which the judge described as a clear and persuasive majority. He declined to adopt a mixed appointment, noting that similar arrangements had previously created more tension than value.

A short postscript to the judgment records the Court’s refusal to consider late evidence or submissions following circulation of the draft ruling, reiterating that parties cannot treat judgment drafting as a negotiation. The special administrators will now begin the statutory process of securing protected funds, assessing creditor claims, and determining the extent of any required investigation into JNFX’s affairs.

Read the decision here.

Jennifer Meech of Serle Court (instructed by Peters & Peters) represented Akintunde Giwa, while Nathan Searle of Hogan Lovells acted for Seven-Up Bottling Company Limited. Rabin Kok of South Square (instructed by Greenberg Traurig LLP) represented the directors.