Informal Committee of Creditors wins application for compulsory liquidation of company as investigations continue into controversial pre-packaged administration of Hellas

Client(s) Informal Committee of Creditors for Hellas Telecommunications (Luxembourg) II S.C.A.

Jones Day advised an Informal Committee of subordinated noteholders ("Committee") of Hellas Telecommunications (Luxembourg) II S.C.A (the "Company") during a two year investigation conducted by the Company's Administrators into the circumstances surrounding the pre-packaged administration in which the noteholders saw their €1.24 billion investment wiped out. In November 2011, the Committee, represented by Lexa Hilliard QC and Jonathan Lopian of 11 Stone Buildings instructed by Jones Day, successfully opposed the Administrators' application to dissolve the company; the High Court ruled that the Company should be placed into compulsory liquidation to enable further investigation of potential claims and protection of certain claims against expiry of an imminent limitation period. It also held that a trust fund, settled with the Administrators as part of the pre-pack process, was available for use by the liquidators in their investigations, defeating the ultimate trust beneficiaries' claim for payment of the fund's balance. Jones Day assisted in protecting claims in Luxembourg as part of advice provided to the joint liquidators to assist them during the early stages of their appointment.

Insolvency, Chancery Division (Companies Court), No 20916 of 2009