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A (partial) phasing out of the current prohibitions on presenting UK winding up petitions?

Further to our blog last week regarding the restrictions on presentation of winding-up petitions being (partially) lifted, the legislation replacing the existing restrictions on presenting winding-up petitions has now been passed and is due to come into force on 29 September 2021. Following the end of the current restrictions on 30 September 2021 (please see … Continue Reading

UK Court Sanctions First “Mid-tier” Company Restructuring Plan

Opening the door for the SME market, Sir Alistair Norris has sanctioned the first ever restructuring plan for a “mid-market” company.  The plan sanctioned in Amicus Finance PLC (in administration) is also the first restructuring plan proposed by insolvency practitioners and the first to cram down a secured creditor. The sanction judgment is short, but … Continue Reading

(UK) Winding Up Petitions – The Hurdle of the Coronavirus Test

The recent case of Re A Company [2021] EWHC 2289 (Ch) outlines how the coronavirus test for winding up petitions will be applied by the Courts. Taking a similar approach, to the cases of Newman v Templar Corp Ltd [2020] EWHC 3740 (Ch) and Re PGH Investments Ltd v Ewing [2021] EWHC 533 (Ch), both … Continue Reading

A Return from the Edge? A New Policy Statement from the UK Government on Commercial Rent Debts

For some time, the government has been considering how best to manage the billions of estimated rent arrears in order to avoid a flurry of winding-up petitions and evictions. This requires a careful balance to protect both landlords and businesses in need, which proposed legislation to ringfence certain rent debt seeks to do. In their … Continue Reading

Settling Tax Debts: How Much Support Will HMRC Provide To Your UK business?

Following the UK business secretary offering assurance that HMRC will take a ‘cautious approach’ to recovering tax debts (see our previous blog), HMRC has now published guidance outlining its approach. This guidance also explains how HMRC might respond where a business has taken advantage of one of the government backed lending schemes (such as a … Continue Reading

CVAs: Valuation and Discounting of Landlord Claims (UK)

In this third alert, we consider the findings in the New Look and Regis CVA challenge cases from the point of view of valuing landlord claims, counting the votes of unimpaired creditors and disclosure.  Both of these challenges cases alleged that there has been non-disclosure, and therefore a material irregularity, and challenged the way that the landlords’ claims … Continue Reading

New Look and Regis from a UK Insolvency Practitioner’s Perspective

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

Small suppliers no longer sheltered from the UK “ipso facto” regime

Last year, the Corporate Insolvency and Governance Act 2020 made a number of changes to the UK insolvency landscape. Amongst the changes, was the addition of the “ipso facto” regime, which prevents suppliers terminating supply contracts as a result of insolvency-related events. Up until 30 June 2021, “small suppliers” were exempt from the regime.  However, … Continue Reading

HMRC Announces “Cautious Approach” to Recovering UK Tax Debts

We highlighted in our previous blog, the pivotal role that HMRC could play in ensuring the survival of UK businesses when all COVID restrictions are lifted and the government’s various temporary support measures come to an end. The Business Secretary, Kwasi Kwarteng, has now assured business that HMRC will take a “cautious approach” to recovering … Continue Reading

Will the new UK legislation to manage COVID rent arrears help landlords and tenants and avoid an insolvency cliff edge?

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

Nero CVA challenge – part one: The pre-emptive strike (out)

CVA challenges have been in the spotlight recently and the story continues with Nero Holdings Ltd v Young in which the court considered an application to strike out a  CVA challenge claim. Although there is nothing ground-breaking in the court’s reasoning to dismiss the strike out/summary judgment application, its detailed reasoning will offer some helpful guidance … Continue Reading

Pursuing An Insolvency Claim May Be Much More Expensive Following this Recent Decision (UK)

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

What do UK administrators need to know about connected party sales?

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

Regis – Another Loss For UK Landlords In Their Battle Against CVAs

Following in the footsteps of the New Look CVA challenge judgment (see our blog here) it was not unsurprising that Zacaroli J dismissed all but one of the landlord challenge claims when handing down his judgment in Regis. The Regis CVA challenge has been ongoing since November 2018. Initially it was thought (following Regis entering … Continue Reading

New Draft UK Legislation- Ability to Disqualify Directors of Dissolved Companies

On 12 May 2021, the UK Government introduced the snappily titled “Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill”. As the title of the bill suggests, it seeks to amend the applicability of the directors’ disqualification regime to directors of dissolved companies. A summary of the current regime is summarised in this note on directors’ … Continue Reading

A New Look for retail company voluntary arrangements (“CVAs”)?

On Monday, Zacaroli J handed down his eagerly anticipated judgment in Lazari Properties (2) Limited (and others) v New Look Retailers Limited (and others). The New Look landlords challenged the New Look CVA and raised a number of arguments which some believed could be the end of CVAs as we know them. In particular, the … Continue Reading
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