Stephen Atherton QC

Stephen Atherton QC became a member of 20 Essex Street in January 2012. Stephen's practice comprises: international and domestic corporate insolvency and restructuring; personal insolvency, company law; banking, general off-shore and international commercial litigation, civil aspects of international and domestic commercial fraud; and international and domestic asset tracing.

Stephen has been heavily involved in many of the recent major domestic and international corporate restructurings and insolvencies including: Lehman Brothers, Landsbanki hf, Kaupthing hf, Madoff, Wind Hellas, Countrywide Plc, The SPhinX Group, Pioneer Freight Futures, Northern Rock, Portsmouth City FC, Eurotunnel, Whistlejacket Capital Ltd, Sigma Finance Corp, British Energy, Enron, Jarvis Plc, TXU, MG Rover, MyTravel, Railtrack, Marconi, and ITV Digital.

Stephen also has considerable experience in commercial litigation and contentious insolvency proceedings in the UK, Hong Kong, Brunei Darussalam, Malaysia, Singapore, the Cayman Islands, Bermuda, British Virgin Islands, Jersey and the Isle of Man including: successful litigation to recover billions of dollars of state assets on behalf of the Brunei Investment Agency and the Government of Brunei Darussalam. He has also been advising the Government of Jordan on the reform and drafting of Jordanian insolvency and corporate restructuring legislation. Stephen acts as an expert witness in relation to the insolvency laws of England and relevant common law jurisdictions (including for example Bermuda).

Prior to joining Chambers Stephen was a member of South Square Chambers for 22 years. He also spent three months working for The Fraud Investigation Group (CPS).

Stephen is recommended in "Chambers & Partners", "The Legal 500", "Legal Experts" and "The World's Leading Restructuring Lawyers".

Specialisations:

International and domestic corporate insolvency and restructuring
Civil aspects of international and domestic commercial fraud
Domestic and international commercial litigation;
Company law
Banking
Personal insolvency

Principal Cases:

Restructuring and Insolvency

Southsea Mortgage and Investment Company Limited (represented the Bank of England on the successful application for the making of the first ever bank insolvency order); Assetco Plc (on behalf of the company, sought and obtained an interim mandatory injunction against the company's CEO requiring him to vote in favour of a £16 million share placement); Re Petrus (Kinnerton Street) Limited (acting on behalf of Gordon Ramsay and related companies in relation to a dispute as regards the ownership of the restaurant "Petrus"); The Saad Group (on behalf of the liquidators of a number of the Cayman Islands incorporated companies); Cattles Group (on behalf of the proposed administrators); Connaught Group (on behalf of the companies); Portsmouth City FC (on behalf of one of the club's former owners); SPhinX (acting on behalf of the Liquidation Committee and individual members of the Liquidation Committee); Bernard Madoff (acting on behalf of the joint liquidators of "feeder funds" based in the British Virgin Islands and for investors in other funds based in the Cayman Islands); Pioneer Freight Futures Limited (acting for the liquidators of one of the world's largest freight futures traders in both England and the British Virgin Islands); The Dawnay Day Group (on behalf of the liquidators of a number of group companies); The Mall Funding Plc (on behalf of the group companies in relation to their restructuring); Lehman Brothers (on behalf of the liquidators of the Hong Kong companies and in the UK for the company's landlords and various counterparties, clients and creditors of the Lehman group); Gallery Capital SA and Gallery Media Group Limited: advising and representing the companies as regards their restructuring, COMI migration and schemes of arrangement; Landsbanki (on behalf of senior management of the bank's London branch); Kaupthing Bank (on behalf of a number of counterparties to "repo" transactions) Wind Hellas (acting for bondholders in relation to the companies restructuring); Countrywide Plc (acting for bondholders in relation to the companies restructuring); British Vita Plc (acting for the company in relation to its restructuring and scheme of arrangement); Kaupthing Bank (on behalf of various depositors and counterparties); Northern Rock (on behalf of the proposed administrators); Olint TCI Corporation (acting for the liquidator of the company brought down by a massive "Ponzi" fraud in the Caribbean); Eurotunnel (on behalf of bondholders); Jarvis Plc (on behalf of the group's major creditors); MG Rover (on behalf of the administrators); MyTravel Plc (on behalf of bondholders); British Energy (on behalf of major creditors); Railtrack Plc (on behalf of the Special Railway Administrators); Leeds United AFC (on behalf of the financers of a proposed rescue bid); Bradford City FC (on behalf of one of the club's major "football creditors"); Crystal Palace FC (on behalf of the club's bankers); Oxford United FC (on behalf of the club in relation to its CVA); Meridien Hotels (on behalf of the group companies); TXU Europe (on behalf of major creditors of the group); ITV Digital (on behalf of the company and the company's Administrators); ntl (on behalf of the company in relation to its restructuring) Enron (on behalf of the Administrators of the group companies); Cammell Laird Plc (on behalf of the administrators); Marconi Plc (on behalf of the companies bankers and bondholders); Global Crossing (on behalf of several group companies in the UK and Hong Kong); Energis Plc (on behalf of the company and the company's administrators); numerous schemes of arrangement (representing companies and creditors in relation to both solvent and insolvent schemes of arrangement across a variety of business sectors including: insurance, reinsurance, energy and leisure).

Commercial litigation / civil fraud / asset recovery

Saad Investments Company Limited v. Al-Sanea (representing the claimant company - acting by its joint official liquidators) in proceedings concerning the enforcement of a share option agreement; Assetco Plc (on behalf of the company, sought and obtained an interim mandatory injunction against the company's CEO requiring him to vote in favour of a £16 million share placement); Renewable Power & Light Plc v. Renewable Power & Light Services Inc (on behalf of the defendants, effect of alleged repudiatory breach of contract on contractual obligations of confidence and production of documents) Enron Capital & Trade Resources Limited (in administration) v. EDF Energy plc (on behalf of the administrators in pursuing a substantial transaction at an undervalue claim); The State of Brunei Darussalam v. His Royal Highness Prince Jefri Bolkiah (on behalf of the State and Government of Brunei Darussalam and the Brunei Investment Agency in worldwide litigation to recover misappropriated State assets); CV Starr v. AIG (on behalf of the CV Starr group and Maurice ("Hank") Greenberg); Barings (on behalf of bondholders in relation to litigation and other issues arising upon the collapse of the bank); Inland Revenue v. Nissan UK Limited (on behalf of the company in relation to allegations of tax fraud); Maxwell (on behalf of the largest of the pension funds in relation to litigation in both England and New York to recover pension fund assets); BCCI (on behalf of the Ruler of Abu Dhabi and the Majority Shareholders in relation litigation and other issues arising upon the collapse of the bank).

Banking and finance

MF Global (advising a number of clients and counter-parties in relation to the consequence of the administration of the investment bank); Kingate Global Fund Limited v. Knightsbridge (USD) Fund Limited (on behalf of the liquidators of the Kingate funds issues concerning status of share subscription monies held by the liquidators); Debt "buy-backs" (advising a number of borrowers on their ability to buy-back debt from their lenders); SphinX (advising and representing the Liquidation Committee and individual members of the Liquidation Committee in relation to various issues arising in the group companies' liquidations); Pioneer Freight Futures (advising the liquidators as to the construction of the freight forward contracts on ISDA terms); Whistlejacket Capital (on behalf of major investors / creditors); Sigma Finance (on behalf of major investors / creditors); Re Oval 1742 Limited (on behalf of the bank in defending its claims to monies repaid by the borrower as against Customs & Excise); Lehman Brothers; Landsbanki; Kaupthing Bank; Northern Rock; Barings; BCCI (as above - advising in relation to a variety of banking and financial transactional issues).

Selected Reported Cases

Saad Investments Company Limited v. Al-Sanea [2011] EWHC 2584 (Comm) Successful defence of an application to set aside an order for service out of the jurisdiction and a successful application for a freezing injunction against the defendant in relation to proceedings to enforce a share option agreement.

Assetco Plc v. Shannon [2011] EWHC 816 (Ch) Successful application for an interim mandatory injunction requiring the CEO of an AIM listed company to cast his vote in favour of an equity placement in the applicant in order to generate necessary working capital.

Kingate Global Fund Limited v. Knightsbridge (USD) Fund Limited [2009] CA (Bda) 17 Appeared in the Supreme Court of Bermuda and in the Court of Appeal of Bermuda in proceedings to determine whether monies for the purpose of subscribing for shares in a "Madoff feeder fund" were held on trust by the liquidators of the fund for the benefit of subscribers.

Band One Sdn Bhd and the Brunei Investment Agency v. Sol Properties Incorporated and Prince Jefri Bolkiah [2008 CILR 301] Successful application to the Grand Court of the Cayman Islands on behalf of the plaintiffs to recover the shares in the company that owns the New Palace Hotel.

Renewable Power & Light Plc v. Renewable Power & Light Services Inc [2008] All ER (D) 170 (Apr) Effect of alleged repudiatary breach of contract on contractual obligations of confidence and production of documents.

Re Whistlejacket Capital Limited [2008] EWHC 463 (Ch) Questions as to the proper interpretation of an insolvency acceleration clause in US medium term notes and the operation payment priority provisions contained in relevant security documents and their impact on the role and duties of receivers appointed pursuant to their terms.

Re Oval 1742 Limited (in Creditors' Voluntary Liquidation) [2008] 1 BCLC 204 (Court of Appeal) "Taking possession" of property subject to a floating charge and the proper construction of Section 196 of the Companies Act 1985.

Prince Jefri Bolkiah v. State of Brunei Darussalam [2007] UKPC 62 Principles to be applied upon an application to recuse a judge for apparent bias.

Prince Jefri Bolkiah v. State of Brunei Darussalam [2007] UKPC 63 Enforcement of a contract giving rise to questions concerning principles relating to estoppel, undue influence, specific performance and admissibility of evidence.

Chantrey Vellacott v. Convergence Group Plc [2007] All ER (D) 492 (Jul) Basis for exercising the Court's jurisdiction under Section 51 of the Supreme Court Act 1981 to make non-party costs orders.

Re Continental Assurance Company of London Plc [2007] 2 BCLC 287 The leading case on wrongful trading.

State of Brunei Darussalam v. Prince Jefri Bolkiah [2005] All ER (D) 354 (Jun) Basis upon which a committal application may be amended.

State of Brunei Darussalam v. Prince Jefri Bolkiah [2005] All ER (D) 250 (Mar) Enforcement of order for disclosure made pursuant to Section 25 of the Civil Jurisdiction and Judgments Act 1982.

Re Mytravel Group Plc [2005] 2 BCLC 123 (CA) Guidance given as to the proper application of the Practice Statement applicable to schemes of arrangement under Section 425 of the Companies Act 1985.

Re Mytravel Group Plc [2005] 1 WLR 2365 The nature of a "reconstruction" under Section 427 of the Companies Act 1985.

Re Brightview Limited [2004] BCC 542 Interests of nominee and beneficial shareholders under Section 459 of the Companies Act 1985 and the inter-action between the remedies available under that section and the principle of "reflective loss".

Re Railtrack plc (in railway administration) [2003] All ER (D) 300 Approval of the remuneration of special railway administrators by the Court.

Winsor (as Rail Regulator) v. Bloom and Ors [2002] 1 WLR 3002 (CA) Application of Section 11 of the Insolvency Act 1986 (as modified by the Railways Act 1993) to the exercise of specific powers of the Rail Regulator.

Education and Career:

Education

LLB (Hons) (Lancaster), LLM (Cantab) (First Class).

Scholarships and awards

Middle Temple: Harmsworth Entrance Exhibitioner; Astbury Scholar.

Magdalene College Cambridge: Bundy Law Scholar; Norah Dias Prize for Law.

Publications:

Responsible for drafting the Practice Statement on insolvency officeholders' remuneration.

"Charges over chattels: issues in the fixed / floating jurisprudence": The Company Lawyer Vol 26 (No 1) p 10.

Appointments and Society Memberships:

SCMA Member

Lectures and Teaching:

"Current Issues in Personal Insolvency Law": delivered to the R3 Personal Insolvency Conference in Manchester;

"Insolvency Law - Legal Update and Annual Review": delivered at the Lawrence Graham Restructuring and Insolvency Conference;

""Why guess when you can know... reality versus contextuality in the interpretation of contracts": delivered to members of the Recovery and Insolvency Specialist Association, Road Town, British Virgin Islands.

"Intercreditor Issues and Other Hot Topics": delivered to the Insolvency Lawyers' Association London Conference.

"Corporate and Business Rescue - the UK Perspective and Cross-Border Considerations": delivered in Amman Jordan to the "Workshop on the Draft Liquidation, Insolvency and Bankruptcy Code".

"The Good, the Bad and the Ugly" - member of discussion panel considering "pre-pack" administrations hosted by Ernst & Young LLP.

"Why all the fuss? - Approval of Insolvency Officeholders' Remuneration": delivered in London as part of the Hawksmere conference: "Current Issues in Insolvency".

"Getting Paid - Approval of Insolvency Officeholders' Remuneration": delivered to the 11^th Annual Conference of the Association of Business Recovery Professionals ("R3") held at Lake Maggiore, Italy.

"Obtaining Approval for Corporate Office Holders Remuneration": delivered to the Insolvency and Litigation Departments of Clifford Chance Limited Liability Partnership.

"Financial Aspects of Corporate Moratoria": delivered to R3.

"Insolvency and Sport - How to Make a Small Fortune...": delivered to the Finance and Insolvency Departments of Latham & Watkins LLP.

"Funding Litigation in an Insolvency Context": delivered to the Insolvency and Litigation Departments of Herbert Smith.

"Legal Issues of Significance and Interest for E-business": delivered in Colombo, Sri Lanka to the Innovation, Security and Accountability in Information Technology seminar hosted by The British High Commission, The British Council and the Council for Information Technology (CINTEC).

"Law and the Internet": delivered to the Corporate and Litigation Departments of Skadden Arps Meagher & Flom LLP.

"Co-operation Between Insolvency Courts - The UK Perspective": delivered in Hong Kong to the Hong Kong Society of Accountants.

"Litigating in the Clients' Interest": delivered to the Litigation Department of Linklaters.

"The Art of War: Litigation Tactics in Large Commercial Disputes": delivered to the Litigation Department of Travers Smith.

Quotes:

'... "very technically knowledgeable," ... He is a favourite with solicitors, who value his ability to communicate complex matters to clients.' Chambers UK 2012

Recent Cases

Areas of expertise

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