KRF Services (UK) Ltd & Ors, Re
| Judge | And rew Twigger K.C. |
| Neutral Citation | [2024] EWHC 2978 (Ch) |
| Year | 2024 |
| Court | Chancery Division |
| Date | 26 November 2024 |
Neutral Citation Number: [2024] EWHC 2978 (Ch)
Case No: CR-2024-002882
IN THE HIGH COURT OF JUSTICE
BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES
INSOLVENCY AND COMPANIES LIST (Ch D)
Royal Courts of Justice, Rolls Building
Fetter Lane, London, EC4A 1NL
Date: 26 November 2024
Before :
Andrew Twigger K.C. sitting as a Deputy Judge of the High Court
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IN THE MATTER OF KRF SERVICES (UK) LTD (Company No. 11549135)
AND IN THE MATTER OF THE INSOLVENCY ACT 1986
(1) KRF SERVICES (UK) LTD
(2) THOMAS PASCAL PIERRE PAILLARDON
(3) KELTBRAY LTDApplicants
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JOSHUA RAY (of CANDEY Ltd.) for the First and Second Applicants
REBECCA PAGE (instructed by BCL Solicitors LLP) for the Third Applicant
Hearing date: 15 November 2024
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Approved Judgment
This judgment was handed down remotely at 10.30am on 26 November 2024 by circulation
to the parties or their representatives by e-mail and by release to the National Archives.
.............................
High Court Approved Judgment:KRF Services (UK) Ltd
Andrew Twigger K.C.:
1.On Friday, 15 November 2024, I made an order appointing Mr Anthony Cork and Mr
Stephen Cork, partners in Cork Gully LLP, as administrators of KRF Services (UK)
Ltd. (the Company). Thisjudgment contains myreasons for making that order.
References below to “Mr Cork” are to Mr Anthony Cork, and I shall refer to him and
Mr Stephen Cork as the “JointAdministrators”.
2.The Company was incorporated on 3 September 2018. Until recently, its business
involved providing management services for the benefit of the family of Dr
Viatcheslav Moshe Kantor, a Russian businessman currently residing in Tel Aviv.
The Company managed, amongst other things: the family’s home at 57 Winnington
Road, London, N2 (including the payment of staff and contractors); a substantial
development of property at 47-49 Winnington Road; and an art collection.
3.All the shares of the Company are owned by KRB PTC Ltd, a company incorporated
in the Isle of Man which acts as trustee of the KR Family Office Trust. Dr Kantor
was the settlor of that trust and is one of its beneficiaries.
4.On 6 April 2022 DrKantor was designated under regulation 5 of The Russia
(Sanctions) (EU Exit) Regulations 2019 (the Sanctions Regulations). I understand
that on 8 April 2022 similar sanctions were imposed on Dr Kantor by the European
Union pursuant to Council Regulation (EU) No. 269/2014. The Company has not
itselfbeendesignated in the UK or anyotherjurisdiction,buttheimpositionof
sanctions on Dr Kantor (here and in the EU) has nevertheless had the practical effect
of preventing the Company from carrying on its business, as I explain below.
5.Whilst the Company does not accept that Dr Kantor “owns”,“holds”or“controls” it
(directly or indirectly) within the meaning of regulations 7 or 11 of the Sanctions
Regulations (and I make no findings one way or the other in relation to that issue), I
understand that HM Treasury’s Office of Financial Sanctions Implementation (OFSI),
regards him as doing so. The reality is that those dealing with the Company, and
particularly the Company’s bank, have understandably conducted themselves on the
basis that the Company is potentially subject to the sanctions regime.
6.The application for an administration order was originally issued on 15 May 2024
(the Administration Application). It was stated to be issued by the Company itself
and by Mr Thomas Paillardon, in his capacity as the Company’s sole director. Mr
Paillardon candidly pointed out in his witness statement in support of the application
that there is an issue about whether a resolution to make the Administration
Application, passed by a board consisting of a single director, amounts to a valid
decision by the Company. The other directors of the Company have resigned, and Mr
Paillardon says that it has not been possible to find other individuals willing to act as
directors, because of the sanctions position.
7.Another difficulty which has arisen because of the designation of Dr Kantor under the
Sanctions Regulations is that the Company was unable to obtain funds to pay counsel
in relation to the Administration Application. Such difficulties led to the original
hearinglisted in July 2024 being adjourned. Continued problems in relation to
funding resulted in the Company’s solicitors, CANDEY Ltd. (Candey), writing to
creditors on 29 October 2024, seeking their consent to a further adjournment. This, in
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