Bird & Bird today announces that it has been advising special administrators, Andrew Andronikou and Peter Kubik of UHY Hacker Young on the special administration of London-based stock brokerage, City Equities Limited, which falls within the definition of "investment bank" under the Investment Bank Special Administration Regulations 2011.
A special administration order in respect of City Equities Limited was granted on Friday evening during an out of hours hearing after the directors' made an urgent application to court the same day. The application was made following previously unsuccessful attempts to recapitalise City Equities under the FCA's capital adequacy rules.
The special administration order is only the fifth such order to have been made since the Investment Bank Special Administration Regulations 2011 came into force in February 2011. Bird & Bird's Restructuring & Insolvency Group's instruction to act for the special administrators of City Equities adds to the team's growing reputation in the financial services sector: the Group acted for the key data centre provider to MF Global in the first ever special administration, and members of the team also advised the special administrators of one of the other four previous special administrations
Joss Hargrave, partner and Head of Bird & Bird's UK Restructuring & Insolvency Group said: "Our International Restructuring & Insolvency Group has grown considerably over recent years. This latest appointment to advise the special administrators of City Equities Limited is a great acknowledgement of the fact that we have developed significant expertise across the financial services sector generally and, in particular, in advising on special administrations whether for the special administrators themselves, the directors of distressed FCA regulated companies or key suppliers to companies in special administration. The fact that our team has now worked on three of the five special administrations is testimony to our significant expertise in this niche field".
Peter Kubik of UHY Hacker Young said: “We have been very pleased with the advice we have received from Bird & Bird on this matter and have been impressed by their knowledge of the special administration regulations. We are continuing to work closely with them as we broach the complex issues that we face on this assignment.”
The Bird & Bird Restructuring & Insolvency Group team advising on this matter was led by Joss Hargrave, James Moore and Martin Sandler.