In our second alert in the series we consider the key takeaways for UK insolvency practitioners following the CVA challenges in New Look and Regis. Our alert considers the following: Nominee’s duties Risks to fees Disclosure requirements Discounts and formulas for calculating landlord claims for voting purposes; and The shape of post-pandemic CVAs To read … Continue Reading
Following the pivotal decisions in the New Look and Regis CVA challenge cases, where do the findings in those cases leave retailers, landlords and insolvency practitioners? In a series of alerts we will consider the key takeaways for landlords, the position of retailers and the impact of the findings for insolvency practitioners. Albeit that the … Continue Reading
From 1 March 2020 until 30 June 2021, the rules on wrongful trading were suspended – albeit there was a short period between 1 October 2020 and 25 November 2020 where they did apply. The temporary suspension has now lapsed, meaning that the courts will no longer assume that a director was not responsible for … Continue Reading
There is a faint light at the end of the COVID tunnel for commercial landlords regarding timings and the ability to recover unpaid rent arrears. The UK Government has announced an extension to the current prohibition on forfeiture and winding up petitions, to enable it to introduce new legislation to help manage the £6bn estimated … Continue Reading
The recent case of Manolete Partners Plc v Hayward and Barrett Holdings Ltd [2021] EWHC 1481 (Ch) impacts both insolvency practitioners and assignees of insolvency claims, potentially making such claims more expensive to bring and a procedural burden by requiring (depending on the nature of the pleaded claims) two sets of proceedings, even though the claims … Continue Reading
Both Spain and Italy have introduced recent changes to their insolvency laws. The changes are covered in our global guide and cover: Spain The obligation for a debtor to file for bankruptcy within two months of becoming insolvent is suspended until December 31 2021. Updates to the Modification of the Creditor’s agreement measures. Postponement of … Continue Reading
Our most recently updated guide includes updates for the UK, UAE, Germany, the Czech Republic, Italy. In brief, the updates include: UK Updates to the Coronavirus Job Retention Scheme (CJRS), Statutory Sick Pay (SPP) and VAT deferral scheme. United Arab Emirates An extension to the TESS scheme Germany Updates on Bridging Aid available to small … Continue Reading
Three weeks after the introduction of the mandatory requirement to obtain an evaluator’s report or seek creditor approval before completing a substantial disposal of a company’s business or assets to a connected person, we have updated our Q&A to include new answers in light of the Insolvency Service’s guidance and following discussions with our clients. … Continue Reading
The UK government has launched a consultation inviting views from stakeholders on options for dealing with rent debt when the existing prohibitions on forfeiture, CRAR proceedings and winding-up petitions end on 30 June 2021. Responses to the consultation can be made here and although participation is voluntary, completing the survey will ensure that the government’s decision as … Continue Reading
From 30 April 2021, an administrator will be unable to complete a sale of a substantial part of a company’s property to a connected person without either the approval of creditors or an an independent written option. Our new alert considers the impact of the new regulations in practice, which apply to both pre-packs and … Continue Reading
With the UK taking positive steps towards re-opening the economy, businesses will start to see the true impact that lockdown restrictions (and the lifting of those restrictions) have on supply and demand. The UK government has continued to support UK businesses including, most recently, extending the prohibition on winding up petitions and the forfeiture moratorium, … Continue Reading
The Corporate Insolvency and Governance Act 2020 introduced a number of temporary changes to UK insolvency laws last year. Those changes, together with other measures such as the moratorium on forfeiture proceedings have recently been extended, we assume, to avoid the perceived cliff edge of insolvencies that might follow if such measures are brought to … Continue Reading
With fairly swift measure the UK House of Commons approved the ‘pre-pack regulations’ confirming that, with effect from 30 April 2021, before a pre-pack sale can complete creditor approval or an independent written report from an evaluator will be required. The detail about, the now mandatory referral process, can be found in our previous blogs. … Continue Reading
There has been a significant increase in the use of CVAs, in particular in the retail and hospitality sector over the last 12 to 24 months, largely impacting landlord creditors. A CVA proposal can often run to hundreds of pages, and understanding what it means, how it impacts creditors and whether the terms offer a … Continue Reading
It is perhaps not unsurprising that the prohibition on landlords taking forfeiture action will be extended until 30 June 2021 given that the UK government has extended other support measures for UK businesses (such as the furlough scheme) and is keen to avoid the cliff edge of insolvencies that many fear could happen should support … Continue Reading
The most notable changes to our updated guide this week are those impacting Japan where: There has been no further extension to the subsidy program for businesses facing severe conditions There has been no further extension to the national rent subsidy program; but The period of the expanded Employment Adjustment Subsidy will be extended; and … Continue Reading
Our most recently updated guide includes updates for the UK, EU, France, Germany and the Czech Republic notably: UK Updates to the Coronavirus Job Retention Scheme (CJRS) Claims for certain grants under the Self-Employment Income Support Scheme (SEISS) have now closed but there has been an update regarding when details for the next grant will … Continue Reading
In the final part of our predictions for 2021 for the UK insolvency market we look at pensions, the National Security and Investment Bill and cross border matters. The first and second part of this series of blogs is available here (part 1) and here (part 2).… Continue Reading
Following on from part 1 of our predictions for 2021 for the UK restructuring market part 2 looks at CVAs, directors duties and HMRC and insolvencies. We had hoped to cover off everything in 2 parts, but 2021 looks to be a busy year so we will publish the final part of this series next week.… Continue Reading
Since 31 December 2020 insolvency proceedings opened in England will no longer benefit from automatic recognition in an EU member state. Instead an application will need to be made for recognition in the relevant member state where there are cross border assets or an establishment. Our quick guide gives an overview of the recognition procedure … Continue Reading
The Pensions Schemes Act received Royal Assent yesterday (11 February). For those involved in restructuring it is important to be aware that the Act introduces new offences, carrying hefty fines and the possibility of imprisonment that apply to “any person”. Given the wide scope of the drafting the new offences could capture directors, insolvency practitioners, … Continue Reading
At the start of 2020, we considered what changes the UK restructuring and insolvency market might expect to see during the year – however no one could sensibly have predicted the significant and far reaching impact of COVID-19. In part 1 of our blog, we look back at 2020 and look forward to what the … Continue Reading
With the announcement of a further national lockdown the wind has somewhat been taken out of the sails of businesses hoping to get back on their feet in early 2021, that is following the good news about the COVID-19 vaccine. It has been a bumpy ride for many businesses over the last few months with … Continue Reading
In this article, Devinder Singh and James Morgan QC consider the status of notices served under the Commercial Rent Arrears Recovery scheme, in particular the timing, security and priority position of such notices. Given that landlords are not able to serve valid CRAR notices until 31 March 2021 (see our blog here), we expect there … Continue Reading
