Archives: UK

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Shining a light on the GDPR – is the insolvency profession prepared?

What is the GDPR? The General Data Protection Regulation (GDPR) is an EU regulation designed to strengthen and harmonise data protection rules for processing data of all individuals within the EU and covers the transfer of such personal data outside the EU. One of the aims of the new legislation is to give control back to individuals … Continue Reading

UEFA’s Financial Fair Play Regulations: Neymar, Mbappe and PSG’s transfer policy – “Financial Doping” or Market Forces?

Paris Saint Germain’s summer transfer activity came to an end in (Seine)sational style! The facts speak for themselves: The two largest football transfer fees in history – £366M combined spending on Neymar da Silva Santos Junior and Kylian Mbappe; Combined wages of a reported £700k/week (both on 5 year contracts). The signings of Neymar and … Continue Reading

Employee Benefit Trusts and insolvency – the next big thing?

Remuneration schemes involving Employee Benefit Trusts (EBTs) have become more prevalent over the last 20 years, often as a way of seeking to remunerate key employees without making pay as you earn or national insurance contributions. Given the developments highlighted below, insolvency practitioners are advised to investigate such schemes in matters coming across their desks to see … Continue Reading

Second ranking charges – No assets, no charge?

The recent Court of Appeal decision in Saw (SW) 2010 Ltd and another v Wilson and others (as joint administrators of Property Edge Lettings Ltd) is the first case to address the effect of automatic crystallisation of an earlier floating charge upon a later floating charge. In order for a floating charge to be a … Continue Reading

Fight or Flight – Insolvency in the aviation industry

Air Berlin, one of Europe’s largest airlines, filed for insolvency on 15 August 2017. The airline, which is Germany’s second-largest carrier after Lufthansa, filed following the decision by Etihad Airways to pull financial support. Etihad owns 29% of Air Berlin and had been pumping money into the struggling airline for the past 6 years. The … Continue Reading

Blockchain: Banks Are Taking Back Control – Time for the Real Estate Industry to Do the Same?

In a recently published article, John Danahy, a real estate partner based in Squire Patton Boggs’ London office, explores the development of a new cryptocurrency and its impact on the worlds of finance and global real estate. Of particular relevance to restructuring and insolvency professionals is the use of so-called “blockchains” in title transfers and … Continue Reading

Mutual Recognition- It takes two…..

UK lawyers and restructuring professionals have been highlighting their concerns for British business and Financial Markets if the Government is unable to negotiate a bespoke treaty between the UK and the EU to preserve the mutual and reciprocal recognition provisions written into the Recast EU Insolvency Regulation (Recast EIR) and the Recast Brussels Regulation (the … Continue Reading

For whom the bell tolls! – Financial distress in the education sector

The new school year is upon us and once again the education sector (and particularly funding for institutions from primary school right through to further education) is in the spotlight at a time when growth continues to stagnate. Education providers are continuing to encounter financial risk as a result of increase in investment requirements outstripping growth. These factors coupled with … Continue Reading

“But, we had a deal!” – Office Holders and Personal Liability for Costs

The recent Court of Appeal case of Stevensdrake Limited v Stephen Hunt [2017] EWCA Civ 1173 provides guidance on whether the office holder is liable to meet the legal costs in CFA cases where there are insufficient recoveries in the estate to meet those costs. Central to costs assessments in litigation proceedings is what is … Continue Reading

Cross Border Insolvency Regulations 2006: Consideration of the public policy exemption and security for costs against Russian official receiver

In the recent case of Cherkasov & others v Olegovich [2017] EWHC 756 (Ch) the English courts considered the public policy exception set out in Article 6 Cross Border Insolvency Regulations 2006 (CBIR) and whether security for costs could be ordered against the official receiver of a Russian company (who had obtained recognition in England … Continue Reading

Schemes of Arrangement: Share-splitting unsuccessful in blocking a takeover scheme

In a corporate world where the capital structures of companies are becoming increasingly complex, schemes of arrangements under the Companies Act 2006 have established themselves as the restructuring procedure of choice for many distressed companies. This popularity is evidenced by the fact that schemes of arrangement have been increasingly used by overseas companies wishing to restructure their … Continue Reading

EU Insolvency Regulation is recast at last

Regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings comes into effect on 26 June 2017 for insolvency proceedings that are opened on or after that date. The Recast Regulation replaces the EC Regulation (1346/2000) on insolvency proceedings and has direct effect in the UK until … Continue Reading

The enforcement of pre-existing security over assets that become subject to a freezing order

A recent decision in the High Court provided guidance with respect to the apparent conflict between freezing orders that have been granted over assets that are subject to an existing security. Generally speaking, a freezing order should only catch the unsecured elements of assets. The question facing the court in Taylor v Van Dutch Marine … Continue Reading

Cross Border Insolvency Regulations 2006- UK recognition of Azerbaijan Restructuring Proceedings

 The English courts have recently wrestled with the Cross Border Insolvency Regulations 2006 (“CBIR”) in a case about the lifting of the automatic stay on proceedings against Korean company STX Offshore & Shipbuilding Co Ltd In the present case (Re International Bank of Azerbaijan OJSC) the English High Court found itself dealing with the application … Continue Reading

Don’t You Know There’s An Election On?

You might have noticed that the UK is heading to the polls on 8 June. Elections of course create a great deal of uncertainty. One of the few things we can be certain of is that whichever party (or coalition of parties) succeeds, the new UK government faces significant challenges going forward, not least of … Continue Reading

Unfinished Business: Insolvency Rules 2016 and changes still to come

The Insolvency Rules (England and Wales) 2016 (“IR2016”) came into force on 6 April 2016 applying to most corporate and personal insolvency regimes in England and Wales. However, there is still unfinished business for the Government and further regulation is expected to be introduced later this year to ensure the changes apply uniformly in all areas.… Continue Reading

The Retail Squeeze- the story of 2017 so far

With Christmas a distant memory, Easter and the first quarter of 2017 behind us and summer and a General Election just around the corner, how are UK retailers shaping up? You will be aware that 2016 saw many well-known retailers fall upon hard times, not least BHS amidst great controversy, Austin Reed the office-wear retailer and Brantano … Continue Reading
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