What to Expect

Disclaimer – who picks up the pieces?

Overview

The issue of the power of disclaimer, specifically a liquidator’s power to disclaim onerous property, has taken divergent paths in different jurisdictions of the UK, particularly between E&W and Scotland. Whilst the power of disclaimer is a powerful tool for liquidators and trustees when dealing with onerous property in E&W, it is another story in Scotland.

From an overall perspective, this session considers the power of disclaimer in a land and environmental context with the following questions being discussed –

As a matter of law, who owns land that has been disclaimed?

Where do environmental or other similar liabilities rank in an insolvency?

What relevance is there (if any), to an insolvency if the relevant entity has been (or is) successfully prosecuted for regulatory breaches?

From a Scottish perspective, the session explores the absent power of disclaimer, environmental liabilities, and the position of an E&W Insolvency Practitioner in dealing with an E&W company with property in Scotland.

Finally, the session will provide an overview of the challenges faced by the OR in the liquidation of Baglan Operations Ltd and considers the question ‘who picks up the eventual liability for the disclaimed assets?’