In Ebbvale Ltd v Andrew Lawrence Hosking (Trustee in Bankruptcy of Andreas Sofroniou Michaelides) [2013] UKPC 1, the Privy Council upheld a winding-up order against a Bahamian company, even though the principal purpose of the petitioning creditor may have been related to obtaining an advantage in separate proceedings in the United Kingdom.

Mr Michaelides was the registered proprietor of a group of properties in London that together formed the Sunnyside Service Station (Sunnyside). Mr Michaelides was adjudicated bankrupt in December 2000 and a Trustee in bankruptcy was appointed. Two days prior to the adjudication, Mr Michaelides transferred Sunnyside to Messrs Andreou, who then sold it to a recently formed Bahamian company, Ebbvale Ltd (the Company), who purchased the property with assistance from a bank loan. The Trustee alleged that the sale of Sunnyside to the Company was an attempt by the bankrupt to hide his continued ownership of it. Accordingly, the Trustee commenced proceedings in England to establish the ownership of Sunnyside.

To reclaim the property, the Trustee purchased an assignment of Company's debt to the bank and the mortgage over Sunnyside. The Trustee then served a statutory demand and petitioned in the Bahamas for an order winding up the Company. The Company opposed the petition, alleging an abuse of process on the basis that the Trustee's underlying intention was to replace the Company's directors with a liquidator, thereby weakening the Company's position in the English proceedings. The Bahamian Supreme Court ordered that the Company be wound up, which was upheld by the Court of the Appeal and the Privy Council. In dismissing the appeal, the Privy Council added that when a winding up order was likely to be of substantial advantage to the Trustee in his capacity as the petitioning creditor, it was not necessary for the Trustee to show that it was his principal purpose.

See court decision here.