The “second opinion” special purpose liquidator: A second opinion

Until relatively recently, the appointment of a special purpose liquidator (“SPL”) was largely confined to proven situations of actual or perceived conflict (or lack of independence) on the part of the incumbent liquidator. However, in recent years courts have demonstrated a willingness to entertain the appointment of a SPL in circumstances where no specific concerns are demonstrated with respect to the independence, conduct or judgment of the incumbent liquidator. Today, it appears that where a creditor simply desires a preferred, alternative liquidator to carry out a legitimate investigation — and is only prepared to fund that liquidator and no other — the courts may consider that is enough to conclude that the appointment of a SPL would be “both just, and of sufficient utility to the external administration”.