Insolvency and Restructuring Alert: King v Bar Mutual Indemnity Fund

This decision explores the circumstances in which a statutory demand may be set aside. The Kings advanced various grounds in an attempt to set aside the Bar Mutual Indemnity Fund’s demand, including a “cross demand” and an argument that bankruptcy would serve no useful purpose (as they had no money or substantial assets). But perhaps most interesting was whether a demand based on an interim costs award pending detailed assessment was in fact a liquidated debt. The judge resolved any lingering question on this latter point with textbook clarity.