Laurence Pagden & Anor v Craig Andrew Ridgley

Facts

The Companies formed part of the Orthios Group, which operated various businesses from the former Anglesey Aluminium Ltd site in Holyhead. The group raised £66m in bonds from Cresta Energy Limited through MPB Eco Parks Limited, and £26.4m from 300-400 retail investors. The bonds were secured by fixed charges over the Land and floating charges granted by each of the Companies, held by Mr Colin as security trustee under a Security Trust Deed; the floating charges were qualifying floating charges for the purposes of paragraph 14(2) of Schedule B1 to the Insolvency Act 1986. On 25 March 2022 Mr Colin appointed Mr Ridgley as administrator of both Companies. In late April 2022 Mr Colin signed a letter approving a sale of the Land and providing for Mr Ridgley to be paid 5% of realisations up to £25m and 15% above that, his solicitors 1% and 5%, and the selling agent Hilco 2%. Cresta objected to the scale of the fees and applied to remove Mr Colin as security trustee. The Land was sold on 9 September 2022 for £35m, Mr Ridgley being paid £2,765,000 and his solicitors £755,000, against secured bondholder debt of £85.62m. Mr Colin was removed and Mr Pagden appointed in his place. The Appellants then applied under rule 18.34 of the Insolvency (England and Wales) Rules 2016, contending the remuneration and expenses were excessive. ICC Judge Greenwood dismissed the application, holding there was no jurisdiction.