Quantuma delivers cutting-edge cross-border insolvency transaction for La Perla
Joint liquidators Andrew Watling and Duncan Beat from business advisory firm Quantuma recently entered into the first cross-border insolvency protocol between two parallel insolvency proceedings in the UK and in a member of the European Union (Italy) after Brexit. This cross-border insolvency transaction for Italian lingerie brand La Perla Global Management (UK) Limited (La Perla) represents the first cross-border insolvency transaction post-Brexit involving parallel proceedings in the UK and Italy.
Quantuma managing directors Andrew Watling and Duncan Beat were appointed as joint liquidators of La Perla Global Management (UK) Limited (La Perla) on 2 November 2023 following an application for the compulsory winding up of the Company made by HM Revenue and Customs, and an order made on 1 November 2023. Via this cutting-edge cross-border insolvency transaction, the joint liquidators successfully achieved the best financial outcome for the English liquidation and the best social outcome for the Italian insolvency procedures, with 100% job retention and an additional 40 hirings through the joint sale.
The La Perla case also saw the first successful coordination of different insolvency procedures opened over members of the same Group in Italy. The first appointment of an agent to assist with the negotiations in Italy and abridge the different legislations applicable. The agent is the equivalent to the foreign representatives under UNCITRAL Model Law. The first adoption, not yet applied, of the EU Cross-Border Insolvency: Court-To-Court Cooperation Principles by both the High Court of Justice of London and the Insolvency Court of Bologna. The first joint sale organised by three different insolvency procedures, one of which was based in the UK.
So far as we are aware, the case is also the first parallel liquidation, in Italy and the UK, opened on a UK Company after Brexit and underlines several issues left unanswered by the withdrawal of the UK from the European Union.
The joint liquidators were supported by Andrea Angelo Terraneo, senior case administrator at Quantuma, who is a qualified Italian lawyer and expert in insolvency law (University of Milan-Bicocca, Italy). Andrea led coordination activities with the other procedures, including the negotiations relating to the protocol, and was also appointed as agent of the joint liquidators for any discussions with the Italian Office Holders, the Court of Bologna, and the Ministry of Industry and Made in Italy. Andrea also helped to abridge the differences between the laws applicable to the case and to facilitate understanding and cooperation between all parties.
The joint liquidators were assisted for the Italian law profiles, by CBA Studio Legale e Tributario, with a team led by partner Antonio Martini and associate Alessandro Botti. Shoosmiths LLP led the English law aspects, including the application for the implementation of the EU Cross-Border Insolvency: Court-To-Court Cooperation Principles. Shoosmiths LLP was led by partner Lee Sennett and principal associate Harry Rose ably supported by Matthew Abraham and Imogen Beltrami of South Square Chambers
Joint liquidator Andrew Watling commented: “We are delighted with the positive result achieved, which shows that the most modern theories regarding cooperation between insolvency procedures in similar circumstances are the most efficient way of tackling cross-border insolvencies and parallel insolvency proceedings.
The protocol facilitated an orderly solution of this complex matter, and we are proud to report that the agreement on the protocol was reached in less than a year from the commencement of the Italian insolvency procedures.”
Lee Sennett, partner, Shoosmiths responded: “We are very pleased to be advising Quantuma, the UK liquidators, in what, so far as I am aware, is the first cross-border insolvency transaction post-Brexit involving parallel proceedings in the UK and Italy.
The La Perla matter has presented novel challenges around jurisdiction, COMI, and officeholder coordination, particularly in the absence of primacy under the EU Insolvency Regulations. Our team has been at the forefront of navigating these complexities with a view to ensuring a collaborative and commercially viable outcome for stakeholders across multiple jurisdictions.”