UK

Subscribe to UK RSS Feed

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

The “Debt Respite Scheme” Regulations: More Delay for UK Landlords

From 4 May 2021 individuals will be able to apply for a moratorium that will provide a breathing space from creditor action.  Our property litigation team have produced this alert considering the impact of  the new regulations and what they mean for landlords. Whilst the regulation will primarily impact those involved in residential lettings, the … Continue Reading

UK Government Consults With Landlords and Tenants on Potential Options for Dealing With Rent Arrears

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

Pre-Pack Sales to Connected Parties – FAQs (UK)

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

Updated: UK Business Viability Guide – understanding director risks and challenges

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

UK Insolvency Protection Laws Extended – Where Are We Now?

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

The Coronavirus Test: Indirect ‘financial effect’ of coronavirus could be sufficient to defeat a winding up petition (UK)

Following the UK Government extending the restrictions on winding up petitions until 30 June 2021 it is useful to note two recent cases that have considered the coronavirus test that currently applies to winding up petitions. In the first case Newman v Templar Corp Ltd [2020] EWHC 3740 (Ch) heard before Christmas but only recently … Continue Reading

Pre-Pack Administrations: How Do Administrators Evaluate the Evaluator? (UK)

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
LexBlog