Tag Archives: insolvency

Declaration of debts by French debtors- creditor vigilance is still required!

Three years ago, the Commercial Code amended the procedure for declaring debts in France with the aim of simplifying the management of insolvency proceedings. Before this reform, the only way for creditors (excluding employees) to declare their debts was to send their proof of debt to the receiver within 2 months (or 4 months for those living outside … 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

The Dominican Republic reforms restructuring and insolvency law

For decades, restructuring and insolvency matters in the Dominican Republic involving merchants and companies in non-regulated industries have been carried out on a “de facto” basis, due to the obsolescence of the existing legal framework and institutions. Fortunately, that is not the case anymore. As a member of the World Trade Organization, the Dominican Republic … 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

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

Corporate Restructurings gaining ground in Poland

Before Polish insolvency law was significantly amended in January 2016,  restructurings were extremely rare, with corporate insolvencies ending in liquidation in more than 90% of all cases. At that point, the number of insolvencies ending in the liquidation of the debtor’s assets significantly exceeded successful restructurings – the focus had been mainly on satisfying the creditors – and allowing … 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

Russia cracks down on shareholders and management who cause company insolvency

The insolvency of companies in Russia is often caused by the negligent or illegal actions of their shareholders and/or management. The Russian Federal Law on Insolvency has been amended to introduce stricter rules on “controlling persons,” which increases their liability for the damage caused to creditors by their actions.… 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 Co-operation in Group Insolvency Proceedings- Myth or Reality?

As 26 June 2017 approaches – the date of entry into effect of the Recast EU Insolvency Regulation (2015/8484/EU) – we  look in detail at the new provisions for co-ordinating the insolvency proceedings of members of a pan-European group of companies and consider whether the new proposals for co-operation will be compulsory, the practicalities of who will … 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

EACTP debates draft Business Insolvency Directive in Brussels

The European Association of Certified Turnaround Professionals (EACTP) organized an evening of debate about the proposed new European Directive on business insolvency held in Brussels on May 2nd at the offices of Squire Patton Boggs. Salla Saastamoinen, the European Commission Director of the Civil and Commercial Justice Unit, attended the event called A New European … 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

Does ATE insurance trump Security for Costs?

When reviewing a security for costs application under CPR 25.12, the courts are faced with the challenge of striking a balance between an impecunious claimant’s access to justice and the possibility of a successful defendant being unable to recover their costs. This is because the general rule in relation to costs under CPR 44.2 is … Continue Reading

The High Court in London goes digital

As of 25 April 2017, for courts within the Chancery division of the High Court in London, the filing of all applications, forms and documents must be performed electronically. This includes the Bankruptcy and Companies Courts within Greater London. It does not apply to the High Courts outside London. Where once a lawyer might expect … Continue Reading

To appoint, or not to appoint- that is the question!

The recent Court of Appeal case of JCAM Commercial Real Estate Property XV Limited v. Davis Haulage Limited [2017] EWCA Civ 267 has set out the importance of there being a settled intention to enter administration and indicated that this is a pre-requisite to an out of court appointment being validly made. The judge at first … Continue Reading
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