Flether Moot 2025 | Clarifications
In accordance with the applicable rules governing the Competition, the Competition Committee
makes the following clarifications.
Factual Clarifications
1. The valuation of 1 billion USD of the Fairland Companies as defined in Para 11. The
Fairland Companies do not have assets that they own in Nuzilia.
2. In para 14, the capital structure of Fairland GO is clarified as “30% Grant Fairland, 20%
Gem Fairland and 50% Fairland Loco”. Following the equity dilution, there has been no
change in the board composition or key managerial personnel of Fairland Aviation and
Fairland Loco.
3. Fairland Loco by virtue of its business and key suppliers and consumers including
Bridgerton LLP, has entered into several supply contracts, which have been subsequently
defaulted on. In Para 18, the guarantee contract of Bridgerton LLP is amended as follows:
“Bridgerton LLP has received a corporate guarantee on behalf of Fairland Loco from Rover
Capital”. As mentioned in and inferred from Para 18, the guarantees are to extend the
existing services on pending payments, to be invoked should the general payment terms
are not met.
4. In Para 18, Dexter Aviation has contracts with Fairland Aviation, as mentioned in Para 16,
Fairland Loco has extended a corporate guarantee to Dexter on behalf of Fairland Aviation.
5. In Para 19, there is a typographical error, Dreamland Loco is a ‘bondholder’ and objected
to the actions as a bondholder and not a shareholder. The objections of Dreamland Loco
are in its capacity as a bondholder.
6. Para 21 refers to a release from multiple guarantee obligations and contracts of all
Fairland Companies together.
7. The interim application filed by Dexter Aviation in the court of Nuzilia is pending.
8. The Chapter 11 proceedings by Rover Capital were filed after the Chapter 15 application
was made.
9. In Para 37, the ‘Creditors of Fairland Aviation’ includes Dexter Aviation.
Additional Clarifications
1. Nuzilia has adopted the MLEG in its exact form and the MLCBI as adopted under the laws
of New York.
2. Para 31 refers to the Utopian bankruptcy law. The Utopian court has appointed a single
insolvency administrator for the reorganisation of all Fairland Companies.
3. Para 39 refers to ‘public policy’ under the laws of Nuzilia.
4. Para 40, the term “empower” is to mean the jurisdiction and power of the court of Nuzilia.
5. The parties are not required to make substantive arguments challenging the appointment
of the insolvency administrator in general. Arguments are to be made specific to the
issues being presented before the Nuzilian Court.
To the extent a team has submitted an inquiry which remains unanswered, the Competition
Committee has determined that such question is either (a) already provided for in detail under
the fact problem, (b) not relevant to the discrete questions that the Nuzilia Bankruptcy Court has
asked the parties to address or (c) is a question which, while relevant, is a matter for the teams
to research independently and address, as may be appropriate, in the context of their
submissions.
