El-Husseiny and another v Invest Bank PSC [2025] UKSC 4
The supreme Court has confirmed that section 423 of the Insolvency Act 1986 applies to transactions where a debtor arranges for a company they own to transfer assets at an undervalue. The court found that the scope of section 423 is not limited to situations where the debtor personally owns the asset in question. This ruling provides much-needed clarity on the breadth of the legislation and strengthens creditor protections against asset dissipation.
Landmark Case - restructuring and insolvency
The supreme Court has confirmed that section 423 of the Insolvency Act 1986 applies to transactions where a debtor arranges for a company they own to transfer assets at an undervalue. The court found that the scope of section 423 is not limited to situations where the debtor personally owns the asset in question. This ruling provides much-needed clarity on the breadth of the legislation and strengthens creditor protections against asset dissipation.