Insolvency specialist Grant Thornton is applying to have a Guernsey-issued administration order over Propinvest Group Ltd, whose assets include investment bank Citigroup's European headquarters, recognised in British courts, it said.
PGL is the investment vehicle of British property entrepreneur Glenn Maud. Its assets -- held through a variety of
subsidiaries and joint ventures -- include the Citigroup Tower skyscraper in east London's Canary Wharf business hub.
On Friday, Grant Thornton was appointed administrator of PGL after the Royal Court of Guernsey issued an order to that effect. PGL has said it will appeal the decision.
Grant Thornton was in the process of applying to have the administration order recognised in British courts, a spokeswoman told Reuters, adding Malcolm Shierson and Jamie Toynton were administrators.
If the administration was valid in Britain, creditors there could potentially pursue the matter via its courts.
The administration order, lodged by Norwegian bank DnB NOR Bank, relates to a book of about 64 properties, many of them retail, in Finland, Norway, and Sweden.
PGL has leave to appeal and will therefore appeal the decision on the basis that the factual conclusions reached by the court are perverse and wrong as a matter of law, it said.
In PGL's, view the decision lacks merit and is wholly unjustified as it is not supported by the factual and legal evidence in the case, PGL said, noting DnB was not and would not become a creditor.
PGL said in May it had consensually and in good faith transferred the shares of all its Scandinavian subsidiaries, which own the 64-property book, to DnB. It said these were of sufficient value to settle any liability to DnB.
It was also seeking a stay of execution from the Royal Court of Guernsey's order to prevent the administration order taking effect pending determination of the appeal.
PGL is a non-trading single company out of a group comprising more than 100 companies. It said other companies within the group were unaffected by this decision and continued to trade as normal.
Maud and property investor Derek Quinlan put Citigroup Tower on the market in April, asking for more than 1 billion pounds to recoup an investment made at the height of Britain's property boom.
(Reporting by Andrew Macdonald; Editing by Dan Lalor)