Tag Archives: insolvency

Smelting the Assets (directors’ duties/transactions at undervalue and to defraud creditors)

Dickinson v NAL (Realisations) Staffordshire Ltd is a useful case on how directors’ duties are looked at following a formal insolvency and ways in which an office holder can challenge transactions if there is evidence of wrongdoing or a concerted strategy to frustrate creditors’ recourse to a Company’s asset base which would ordinarily be available … Continue Reading

Tenant Troubles- A minefield for the receiver

Managing residential tenanted property can be a challenge for receivers. In many cases, it is necessary for them to act as “accidental landlords” to maximise the potential realisations to the appointing lender. These lenders have lent money to companies or individuals who invest in residential blocks and collect rents from their tenants. When the borrowers default, … Continue Reading

We’re all going on a summer holiday – but make sure it’s ATOL protected

The decorations are down, the last of the Quality Street has been consumed and the New Year’s resolutions are a distant (and perhaps failed) memory…….suddenly the dreary weather leads to thoughts of sunshine and distant shores. Travel companies have dubbed the first Saturday in January ‘Sunshine Saturday’ as many holidaymakers plot their escape during the … Continue Reading

Bradford Bulls arise from the ashes?

Following the liquidation of Bradford Bulls earlier this month, the Rugby Football League have agreed a deal for a new rugby league team based in Bradford to commence life in the Kingstone Press Championship for the start of the 2017 season on 5th February 2017. After a brief bidding process for the rights to incorporate … Continue Reading

The Road Ahead for 2017 – Restructuring & Insolvency in Australia

It is anticipated that, by the middle of the year, Australia will see the most significant reform to the corporate and personal insolvency environment in two decades. The reforms, which appear likely to be supported by all sides of government, are designed to promote business preservation and allow greater flexibility in order to ‘turnaround’ distressed … Continue Reading

The Road Ahead for 2017 – Restructuring & Insolvency in US

Slide Rules and Hula Hoops – Business Obsolescence and Bankruptcy One of the functions that bankruptcy proceedings can serve is to encourage entrepreneurship by allowing people to pursue bold innovations while still allowing them to recover if their new ideas don’t prove successful. Another equally important function is to provide a structure for restructuring or liquidation … Continue Reading

The Road Ahead for 2017– Restructuring & Insolvency in the UK

The uncertainties of the UK’s Brexit negotiations with the remaining 27 EU member states are weighing heavily on the UK economy. The 2 years of negotiations will not even begin until notice is served under Article 50 and the procedure as to how Article 50 can be triggered will be the subject of a Supreme Court decision expected later this month. In … Continue Reading

A TUPE sting in the tail – Project Viva Limited (In Administration)

An employment tribunal has recently confirmed that employees who have been unfairly dismissed from an insolvent employer can bring an action against a connected successor company. The tribunal held that there was a ‘commonality of ownership’ between the original and successor companies and that it was correct as a matter of public policy that employees should be able … Continue Reading

New Year; New Personal Insolvency Regime for Slovakia

The Slovak personal insolvency regime will change on March 1, 2017. The new system is aimed at opening personal insolvency to a wider debtor audience, while keeping it simple and cost effective. Today, only those individuals with assets over EUR 1,659.70 could seek a declaration of bankruptcy. Otherwise, the proceedings would be stopped and the doors … Continue Reading

Changes to the Russian Unified Federal Register of Data on Bankruptcy

In June and July 2016, several important amendments to the Federal Law No 127-FZ of 26 October 2002 ‘On Insolvency ’ came into effect in Russia. According to the Amendments, only after the preliminary payment has been made can information on insolvency proceedings be included into the Unified Federal Register of Data on Bankruptcy and published in … Continue Reading

Berkeley Applegate and when administrators can get in too Deep (Purple)

In the recent case of Gillan v HEC Enterprises Ltd (in administration) and Ors [2016] EWHC 3179 (Ch), the High Court considered (1) in what circumstances administrators can recover costs and expenses incurred in dealing with trust property and (2) how the administrators’ costs in applying for a Berkeley Applegate order and other litigation were to be dealt with.… Continue Reading

Beware French Employees’ Remedy for Damage to their “Individual Interests”

It is not always easy to prioritize between the various goals pursued in every insolvency legislation, namely; the continuation of the company, preservation of the jobs, the general economic/public interest and the payment of dividends to creditors. There is no clear hierarchy in French law amongst these major targets and French case law appears fairly pragmatic. … Continue Reading

Prohibited names and partnerships under Section 216

The recent case of Re Newtons Coaches [2016] EWHC 3068 considered whether a partnership falls within the remit of s.216 Insolvency Act 1986 (“IA 86”). The case looked at what s.216 is designed to prevent and the nature of partnerships in the context of both the Insolvent Partnerships Order 1994 (“IPO 94”) and the IA … Continue Reading

Wrongful Trading – The Importance of Quantifying Loss

The recent successful appeal in Brooks and another (Joint Liquidators of Robin Hood Centre plc in liquidation) v Armstrong and another [2016] EWHC 2893 (Ch), [2016] All ER (D) 117 (Nov) has clarified and highlighted the complexities of bringing a wrongful trading claim and the importance of correctly quantifying losses for which directors can be made … Continue Reading

Christmas on Credit

With the UK festive season now merrily in swing, credit cards maxed out on Black Friday and Cyber Monday bargains and Christmas shopping well under way, will the lure of the Christmas spirit be enough to tip some people over the edge into unmanageable debt? For many the holiday season is a time to adopt … Continue Reading

Early Restructuring and a Second Chance for Entrepreneurs – EU Commission proposes new Restructuring Directive

According to the European Commission, every year in the EU, 200,000 firms go bankrupt, resulting in over 1.7 million people losing their jobs. Currently, too many viable companies in financial difficulties are steered towards liquidation rather than early restructuring. Also, too few entrepreneurs get a second chance. In order to improve this situation, yesterday  the … Continue Reading

The balance of power – the right deal or the best deal? New administration procedure for housing sector

The Housing and Planning Act 2016 (the “Act”) introduces special administration procedures for social housing associations which aim to protect the level of social housing in the UK.  The new housing administration orders (“HAOs”) create an additional objective for insolvency practitioners to try to keep social housing in the regulated housing sector to maintain levels of … Continue Reading

Chancellor of English High Court looks to a post-Brexit future

In an address last week to the Insolvency Lawyers Association, Sir Geoffrey Vos, the new Chancellor of the High Court, looked at the future for Insolvency and Business Litigation in London, especially after Brexit. Whilst acknowledging that Brexit presents a challenge, he said it is one which should not defeat the English Courts. The main issue … Continue Reading

Marshalling Allows Individuals to Benefit from Agricultural Charges

The High Court has recently held that an individual may claim the proceeds of the sale of assets subject to an agricultural charge by the application of the equitable remedy of marshalling. Agricultural Sector The agricultural or farming sector includes a combination of unique assets and ownership structures that have given rise to a bespoke … Continue Reading

Brexit by numbers

What are the implications for the European restructuring profession of the continued uncertainty over the UK’s withdrawal from the EU? The High Court gave its judgment in the Article 50 judicial review proceedings on 3 November 2016. The Court decided the UK Government does not have the power under the Crown’s prerogative to give notice pursuant to … Continue Reading

Stormy Waters for the Shipping Industry?

The shipping industry was recently in the headlines when on 31 August 2016 Hanjin Shipping Co filed for bankruptcy protection in the Seoul Central District Court. Hanjin was South Korea’s biggest container carrier and the seventh largest in the world. Upon obtaining bankruptcy protection, 66 of its ships containing an estimated $14.5bn of cargo were left … Continue Reading
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