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What is the “key” to validly appointing administrators?

First, there was the HMV case, then Skeggs Beef and SJ Henderson. Following which we had further judicial decision in All Star Leisure and now Keyworker Homes, all of which considered the validity of appointment of administrators using the e-filing system. Keyworker Homes deals with these questions: Can a notice of intention to appoint administrators … Continue Reading

Directors may be entitled to a refund of payments made in settlement of the HMRC loan charge

Following an independent review of HMRC’s loan charge the UK Government has announced that there will be a number of changes to the loan charge, which in some cases will include repayment. Not only will some directors be able to claim back payments made in settlement, others will be able to take advantage of more flexible … Continue Reading

New Year, New Resolutions and New Name

Happy New year to all of our blog readers! With the start of a new decade, we are giving our restructuring and insolvency blog a fresh new look and name: Restructuring GlobalView. Restructuring GlobalView will provide readers with unique perspectives on restructuring and insolvency issues from around the globe, offering practical views from the global … Continue Reading

Does e-filing administration appointment documents give you a headache?

Causer v All Star Leisure (Group) Ltd [2019] EWHC 3231 (Ch) (Causer) is yet another case which highlights the issues that e-filing can cause for practitioners when using the system to appoint administrators. The decision in Causer followed Skeggs Beef in concluding that whilst the appointment of an administrator by a QFCH out of hours … Continue Reading

What impact does the General Election have on the proposed return of Crown preference?

The government announced its intention to reinstate HMRC as a secondary preferential creditor in the 2018 Autumn Budget. Following consultation on this policy, the draft Finance Bill 2019/2020 was published. It was then subject to further technical consultation. Usually a policy is confirmed (or delayed or abandoned) in the Autumn Budget and if confirmed, will … Continue Reading

What are the consequences of taking money from a rent deposit if the tenant company is in administration?

If administrators use leased property for the benefit of the administration, rent is payable to the landlord for the period of occupation, as an expense of the administration. In London Bridge Entertainment, the court considered whether the administrators were obliged to top up a rent deposit where the landlord had taken monies from the rent … Continue Reading

Does a company voluntary arrangement permanently vary the terms of a lease?

In this three part blog we highlight three recent court decisions concerning landlord rights and insolvency, which provide cautionary warnings and surprising twists.  The questions we consider are: Does a company voluntary arrangement (“CVA”) permanently vary the terms of a lease? Can a landlord be forced to accept a surrender of a lease? What are the … Continue Reading

When should an NOA be filed to avoid a defective appointment or subsequent court application?

E-filing a notice of appointment of administrators outside of court counter opening hours can impact the validity of an administrator’s appointment. The recent high court rulings in SJ Henderson & Company Limited and Re Triumph Furniture Limited [2019] EWHC 2742, and Re Skeggs Beef Limited [2019] EWHC 2607 (Ch) should serve as a caution that a company, … Continue Reading

How does the EU Restructuring Directive compare to Chapter 11?

On June 26, 2019, the European Parliament and the Council of the European Union published a new EU Restructuring Directive on preventive restructuring frameworks, discharge of debt and disqualifications, and measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt (“Directive”). This is an extraordinary achievement given the existing differences in … Continue Reading

CVA challenges by landlords – the latest news

The hair salon Regis announced recently that the company has entered administration. The news might not come as a surprise because the chain, prior to the company’s administration, was subject to a company voluntary arrangement (“CVA”) whose validity was challenged by landlords. The joint administrator of Regis commented: “trading challenges, coupled with the uncertainty caused by … Continue Reading

Insolvency practitioners could be personally liable to the tune of £1 million

Dealing with pensions in insolvency can be challenging for insolvency practitioners (“IPs”) and the Pension Scheme Bill (“Bill”) presents another. Whilst a prudent insolvent practitioner should not be unduly alarmed, s114 of the Bill inserts a new section 80B into the Pensions Act 2004 which gives the Pensions Regulator (tPR) power to issue insolvency practitioners … Continue Reading

How do you manage property portfolio costs?

Retail remains a challenging market but there are a number of ways retailers can proactively manage their property portfolio costs to address those challenges. In our video partners Prew Lumley and John Alderton consider practical options for tenants when negotiating with landlords, including recent trends with Company Voluntary Arrangements. Thinking smart and being proactive may … Continue Reading

The court confirms that landlords have the right to forfeit a lease if its tenant enters a CVA. What practical impact does this have on landlord claims?

Can a CVA bind a landlord in respect of future rents? Is the landlord a creditor in respect of future rent? What about the right to forfeit; can a CVA modify that right? Is compromising rent under a CVA automatically unfair to landlords when other trade creditors are paid in full? These were some of … Continue Reading

What caused the collapse of Thomas Cook?

Thomas Cook is the latest holiday company and high street retailer to hit the headlines with its collapse into liquidation. It comes at a huge cost to the Government and Civil Aviation Authority who bear the cost of repatriating an estimated 150,000 holidaymakers. In addition, over 22,000 worldwide jobs are now at risk and there … Continue Reading

Cryptocurrencies: practical considerations in insolvencies

In a recent report by INSOL International, only 5% of insolvency practitioners (“IPs”) said that they had a “comprehensive or practical/working or understanding” of crypto-currency. So with over 4,000 types of cryptocurrency now available and as payment technology continues to develop, we look at some issues facing IPs, including How to identify cryptocurrency How to … Continue Reading

The Government fails to listen to lenders as it presses on with reforms which may stifle UK enterprise

  We reported last week that the Government intends to proceed with its proposal to reinstate HMRC as a preferential creditor on insolvency, which could spell disaster for UK businesses, lenders and the UK economy. The Government has failed to listen to lenders and others who responded to the Government’s consultation about the impact of … Continue Reading

Draft Finance Bill published: HMRC preferential status on insolvency confirmed

Today the Government published draft provisions for inclusion in the Finance Bill which will amend the Insolvency Act 1986 and grant HMRC preferential status on insolvency. A status that was removed in 2003 but which will be re-instated (in part) from 6 April 2020. Despite huge concern from the lending market, voiced in responses to the … Continue Reading
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