Tag Archives: litigation

Why financiers should consider taking security over short leases

When we review security for financiers, we always consider what enhancements they might implement to strengthen their security net. As part of this approach, we obtain a proprietor search from the Land Registry to see if there is any uncharged property in the name of the borrower. Often, any property identified is a short to … Continue Reading

Is it possible to Restructure in Russia?

Theoretically, a Russian debtor is able to reorganize. In practice, the law currently does not encourage voluntary restructuring of debt in a way designed to preserve the continued operation of business and jobs.  The interests of debtors and creditors are not appropriately balanced at present to achieve the best results.  Creditors currently have a strong … Continue Reading

When an Asset is not an Asset

The Court of Appeal has recently considered the status of contingent assets within the balance sheet test for insolvency in the context of a company’s inability to pay its debts. Under Section 123 Insolvency Act 1986, a company is deemed unable to pay its debts if its assets are less than its liabilities including contingent … Continue Reading

France Publishes Final List of 19 Specialised Insolvency Commercial Courts

The French government has made the assessment that certain small commercial courts were regularly finding themselves confronted with cases of great complexity, only because the company in difficulty had its head office in the jurisdiction of these courts. It therefore announced the establishment of specialised commercial courts (TCS) which will process the most complex insolvency proceedings. … Continue Reading

Interest Rate Mis-selling – Temporary Relief For Banks

The interest rate mis-selling scandal took another twist recently when a landmark legal case was dismissed by the High Court. Had the case been successful it would have challenged the banks’ £2.1bn compensation scheme set-up to settle inappropriate interest rate swaps – however the decision only brings temporary relief for the banks. Background A judicial review … Continue Reading

A rock and a hard place…

It is very much the nature of the job that appointed Office Holders are required to make difficult and challenging decisions on each and every case they take. On some occasions those decisions are well received – on others, not so well. Creditors affected by those decisions can take comfort that the Office Holder is … Continue Reading

Creditors of Lehman Brothers Australia to Receive Further Dividends

The Federal Court of Australia has approved a settlement, effectively resolving one of the most complex corporate insolvencies in Australian history. On 18 December 2015 the Federal Court of Australia approved a settlement relating to inter-company loans and disputed assets between the liquidators of Lehman Brothers Australia Ltd (LBA) and American parent company Lehman Brothers … Continue Reading

Exercising Discretion- when does a Debtor run out of time?

When will the Court exercise its discretion to adjourn a bankruptcy petition or make an immediate bankruptcy order? The recent Bankruptcy Court decision of Aabar Block Sarl v Maud provided clarification on the matters that the Court will take into consideration. John Alderton (Partner) and Jon Chesman (Associate) represented the Debtor, Glenn Maud, who successfully applied for … Continue Reading

‘Safe Harbour’ For Insolvent Trading: Australian Reforms Encourage Business Activity

In December 2015, as part of its National Innovation and Science Agenda, the Federal Government announced a proposal to introduce a ‘safe harbour’ for directors from personal liability for insolvent trading. The proposal seeks to address Australia’s insolvent trading laws, which are significantly stricter than comparable laws in the United Kingdom, Canada and New Zealand. The … Continue Reading

Australian Full Federal Court Recognises Market-Based Causation

A landmark decision of the Australian Full Federal Court will allow the Applicants to plead market-based causation for claims for misstatements and omissions in an IPO and short form prospectus and for misleading and deceptive conduct claims in respect of various audited financial statements issued by the company Arasor International Limited (“Arasor”). The Court upheld the appeal … Continue Reading

A shift in the balance……?

On 14 September 2015, judgment was handed down in the case of Re SSRL Realisations Limited (In Administration), in which a landlord was granted permission to forfeit a lease by peaceable re-entry. The case will be of interest to insolvency practitioners and landlords alike – but for very different reasons. The facts of this case … Continue Reading

Powerful Changes to UK Insolvency Legislation – Are You Ready?

On 1 October 2015, several changes to UK insolvency legislation are coming into force. Insolvency practitioners and stakeholders should take note of the following key amendments to make sure they are up to date with these changes. The amendments are the next raft of changes to insolvency law under the Small Business Enterprise and Employment Act … Continue Reading

New High Court Treatment for Subject Access Requests

Dealing with subject access requests (“SAR”s) under the Data Protection Act 1998 is becoming a regular occurrence for many organisations, particularly banks and their advisors.  Processing such requests can take up significant manpower and the costs can be substantial.  Whilst designed to allow individuals to access personal data, determine its source, why it is held … Continue Reading

Aristophil: French Art World Rocked by Suspected “Ponzi” Scheme

A scandal in the world of letters and old manuscripts would not have gone unnoticed and the French case of Aristophil has lead to extensive press coverage; a massive fraud is suspected with thousands of works and hundreds of millions of euros at stake. The concept was appealing: manuscripts full of history, a promise of elevated re-sale … Continue Reading

How the Financial Crisis in Spain has Affected Enforcement of Secured Loans

TMA Europe held its second roundtable discussion in Madrid, Spain on Thursday May 28, 2015. The Roundtable featured a panel of senior professionals from central banks, regulators and law firms, together with alternative investors, PE firms and financial advisory firms. Fernando Gonzalez, a partner at Squire Patton Boggs in Madrid, spoke about the recent changes in the banking field in Spain … Continue Reading

Taking it to the Wire – PPF deny Rogue’s Charter?

In February this year, Squire colleagues Paul Muscutt and Helen Kavanagh wrote about the Carrington Wire Defined Benefit Pension Scheme, where  the UK Pensions Regulator accepted a payment of £8.5m to settle warning notices of £17.7m issued to Russian companies that had guaranteed sums due from Carrington Wire to the Scheme (“the Guarantee”). For the previous blog and background to the Carrington Wire … Continue Reading

European Court of Justice Rules on Applicable Law in Cross-border Clawback Proceedings

On April 16, 2015, the European Court of Justice (“ECJ”) provided guidance on the interpretation of Article 13 of the EC Regulation on Insolvency Proceedings (the “Regulation”) in the case Lutz v Bäuerle – C-557/13. Pursuant to Article 4.2 of the Regulation, the general rule is that the law of the Member State where the  insolvency proceedings … Continue Reading
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