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(UK) To Whom Should Insolvency Claims Be Assigned? 

It is often the case, that insolvency claims are pursued against former directors of the insolvent company or persons connected to them.  It is also often the case, that such claims are assigned to a litigation funding company given lack of funds in the insolvent estate to pursue them.  This is what happened in Lock … Continue Reading

How Should UK Officeholders Deal with Notices Where the Rules Require Information that is Irrelevant?

In the case of Caversham Finance Limited (in administration) [2022] EWHC 789, the court considered whether errors in a notice to creditors seeking consent to extend an administration made the extension invalid. This case is important as it shows the court’s approach to omission of prescribed information in notices to creditors. The information that was … Continue Reading

Smile Telecoms – Second Restructuring Plan Sanctioned

Smile Telecoms Holdings Limited (“Smile”), a Mauritian company, has recently had its second restructuring plan sanctioned by the High Court in England.  The case contains some important markers for those involved in restructuring plans, particularly those plans which involve international elements or which seek to prevent out-of-the-money creditors from voting on the plan. Background Smile’s … Continue Reading

Evaluating the Evaluation Process for UK Connected Party Sales – One Year On

It has almost been 12 months since the Administration (Restrictions on Disposal etc to Connected Persons) Regulations 2021 came into force on 30 April 2021. The regulations require an administrator to obtain creditor approval or a report from an independent evaluator in advance of completing a “substantial disposal” of the company’s property to a connected … Continue Reading

(UK) Rent Arbitration – A Useful or Useless Tool?

Often with new legislation, we might introduce it with words such as ‘much anticipated’ or ‘welcome’, but the Commercial Rent (Coronavirus) Act 2022 is for many landlords and tenants, too late, or unnecessary, because deals have already been done in respect of unpaid COVID commercial rent payments. The Act came into force on 24 March … Continue Reading

The Effect of Sanctions on Supply Contracts

The impact of Russia Sanctions has, as we have seen in the US with the first Chapter 11 filing (see our previous blog) started to have an adverse impact on businesses that have connections with Russia.  The impact on supply chains, and the consequences for business remain at the forefront of discussions and in our … Continue Reading

(UK) In What Circumstances Can Directors be Personally Liable for Company Taxes?

A lot is said about directors’ duties – ensuring that they are complied with to avoid potential claims resulting in personal liability – and that remains the case. However, as officers of a limited liability company, directors should also be aware of the circumstances in which they could be personally liable for the company’s tax … Continue Reading

What is the Impact of Recent Policy Changes on a Lender’s Appetite to Lend and UK Business Recovery?

As part of our business recovery and resilience series, our fourth video from Aysha Fernandes (Commercial Finance Director at UK Finance), answers this question as well as commenting on what trends UK Finance have been seeing as we start to come through the pandemic.  To listen to Aysha’s answer click here. Our previous video answering … Continue Reading

(UK) New Look Appeal Settled – What Does This Mean For CVAs?

Last year we saw two pivotal judgments handed down, Regis and New Look.  These both concerned challenges brought by landlords, as to the manner in which landlord claims were treated in Regis’ and New Looks’, company voluntary arrangements (CVA).  In the New Look case, landlords sought to attack the company’s CVA from all angles, with … Continue Reading

Managing Your European Business in Light of Sanctions imposed on Russia

The huge and devastating impact of COVID-19 on people, economies and business was unforeseen, and although (in the UK, at least, with all restrictions now lifted) the pressures created by COVID-19 are hopefully a thing of the past, businesses are seeing new challenges impacting recovery, trade and growth. It is saddening to watch the developments … Continue Reading

Keeping the (light) Bulb on special energy administrations – an update on the Bulb special administration

In our previous blogs, we discussed the announcement that Bulb Energy Ltd (“Bulb“) was placed into special administration and considered the reasons why special administration (as opposed to ordinary administration) was deemed necessary in Bulb’s case, as well as providing an overview of how special administration differs from ordinary administration (and the supplier of last … Continue Reading

The Reform Of The Spanish Insolvency Act – Positive News For Spanish Companies

At the end of 2021, the Spanish government approved draft reforms of the Spanish insolvency laws that transposes Directive (EU) 2019/1023 of 20 June 2019 on preventive restructuring frameworks into Spanish law. The reform will bring about a comprehensive change in insolvency proceedings in Spain. So what are these changes and what effect will these … Continue Reading

Does your UK businesses have a Plan A, when Plan B ends?

With the end of all Plan B restrictions in sight, 2022 should (fingers crossed) be a better year for UK businesses who have faced a long and tough challenge managing issues such as Brexit, supply chain, the sustainability agenda, ESG, regulatory change and cash flow alongside the unpredictability of COVID. Throughout the pandemic we have … Continue Reading

Failure to file a HR1 form (even if inadvertent) could result in an administrator facing criminal prosecution

Employment law and insolvency law can sometimes have a strained relationship, particularly when laws safeguarding employee rights find themselves in conflict with an insolvency practitioner’s duty to act in the interests of all the creditors (as opposed to any one group). But the case of Palmer vs Northern Derbyshire Magistrates’ Court should be heeded by … Continue Reading

(UK) Keeping the (light) Bulb on special energy administrations – what will happen next to Bulb ?

We discussed the announcement that Bulb Energy Ltd (“Bulb”) was due to be placed into special administration in our previous blog outlining how the rules for energy supply companies work, the supplier of last resort (“SoLR”) regime and what energy supply company special administration entails. In this blog we look at why it was necessary … Continue Reading

(UK) How Will the New Rent Arbitration Scheme Work for Commercial Landlords and Tenants?

In our second alert in the series, we consider the proposed new rent arbitration scheme and the draft Bill explaining how the process is expected to work, key points to note about the scheme and whether commercial landlords and tenants will use the scheme to resolve outstanding COVID rent arrears disputes. Access the alert here… Continue Reading

Restructuring Foreign Companies in England Using a Restructuring Plan

A restructuring plan may well be a very effective way of restructuring a foreign company. It has several advantages over a scheme of arrangement and with a relatively low entry threshold, the English court has already sanctioned at least one plan for a foreign company in the relatively short time that it has been available.  … Continue Reading
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