The purpose of this paper is to discuss, from the viewpoint of a corporation lawyer, protection and indemnity (P&I) clubs under circumstances where the club concerned has become financially embarrassed. As a corporate lawyer, this writer is accustomed to seeing the assets of an insolvent company realized and disposed of in accordance with the normal rules imposed by the country of incorporation. The concept behind P&I clubs—that of a company being a conduit, in some cases the only conduit, for mutual dealings between owners insuring one another severally—is quite difficult to grasp. When considered in the context of an insolvent club winding up, the concept assumes the aspect of fantasy.