“Although a contractual provision which had the effect of requiring a person who had become insolvent to be deprived of an asset conflicted with the principle that an insolvent’s assets would be available for distribution among his creditors and would generally be unenforceable, the principle did not invalidate contractual provisions which had the effect of prejudicing creditors of a company in the event of insolvency by the actual or effective removal of an asset from the insolvent estate.”
WLR Daily, 30th July 2009
Source: www.lawreports.co.uk
Please note once a case has been fully reported in one of the ICLR series the corresponding WLR Daily summary is removed.
