Securing landmark cross-border recognition for provisional liquidators in RTI Limited case

In a first-of-its-kind decision, the Royal Court of Jersey has issued a Letter of Request to the High Court of Justice of England and Wales, seeking recognition of the appointment of James Pirie and Alan Roberts of Grant Thornton Limited as Provisional Liquidators of RTI Limited. The application was brought by us, marking a significant milestone in Jersey’s cross-border insolvency practice.

The provisional liquidation of RTI Limited marks the first appointment of its kind by the Royal Court under provisions introduced into the Companies (Jersey) Law in 2022. The latest decision is therefore the first time the Royal Court has issued a letter of request in relation to provisional liquidation, and only the second time it has requested assistance by way of the recognition of Jersey-appointed liquidators in England. The Court’s decision sets a precedent for future cooperation between jurisdictions where insolvency procedures are closely aligned.

We acted for the Provisional Liquidators in both this matter and in the matter of the earlier Otaki Holdings Limited (a Jersey company whose liquidators were recognised in England and Wales in January 2023 following the issue of a similar letter of request by the Jersey Court), demonstrating our leading role in shaping Jersey’s cross-border insolvency framework. 

Our team was led by partner Nigel Sanders and included partner Richard Holden, senior associate Bradley Gibb, associate Victoria Barclay and paralegal Peter Emmanuel.

Nigel Sanders commented: "This decision provides helpful clarity on the Royal Court’s approach in provisional liquidation cases. It confirms that Jersey’s courts are willing to engage with other jurisdictions where procedures are aligned and creditor interests are best served."

Background

The Royal Court confirmed that where insolvency procedures in Jersey and England and Wales are analogous, such as provisional liquidation, this provides the strongest basis for invoking its inherent jurisdiction to seek assistance under section 426 of the Insolvency Act 1986. 

The Court was persuaded that recognition in England and Wales would be in the best interests of creditors and would enable the Provisional Liquidators to carry out investigations into assets and records located in that jurisdiction.

Following the issuance of the Letter of Request, the High Court formally recognised the appointment under case number CR-2025-005950, granting the Provisional Liquidators powers under sections 234 to 236 of the Insolvency Act 1986 and confirming the applicability of the moratorium under Article 157B(4) of the Companies (Jersey) Law 1991.

This recognition enables the Provisional Liquidators to take meaningful steps to safeguard assets and progress investigations in England and Wales, while preserving the Royal Court’s supervisory role over the Jersey proceedings