Philip Hinks recently appeared for the liquidators of Picture Home No.1 Limited (in members voluntary liquidation) (‘PH1’).
Following a largescale securitisation transaction, PH1 became the trustee of a number of residential mortgage loans which were of limited value. The various companies for whose benefit the loans were held had been dissolved between 2012 and 2017. The mortgages being of no value to the liquidation estate (since PH1’s interest in the loans was as trustee only), the liquidators applied for a direction that they be at liberty to divest the company of such trust assets.
The relief sought was granted by the Court (Deputy ICC Judge Agnello QC). In her judgment, the Deputy Judge observed that the application was novel in that, unlike cases like Re Allanfield Property Insurance Services Ltd  EWHC 3721 (Ch) and Re Pritchard Stockbrokers Ltd (in special administration)  EWHC 137 (Ch), the present application sought a direction that the liquidators could, in effect, disclaim trust property; rather than distribute it to beneficiaries on a particular basis. Nonetheless, the Court concluded that it had jurisdiction to grant the relief sought under s.57 of the Trustee Act 1925.
Philip was instructed in this matter by Jeff Drew at Reed Smith.
A copy of the judgment can be found here.