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Re Active Wear – A Reversal on a Sole Director’s Ability to Appoint Administrators?

In the recent case of Re Active Wear Limited (in administration), the High Court ruled that the purported out-of-court administration appointment by a sole director of a company with unmodified model articles, was valid notwithstanding the earlier High Court decision in Re Fore Fitness Investments Holdings Ltd [2022] EWHC 191 (Ch). We have set out … Continue Reading

Door Closes On UK Rent Arrears Scheme

Brought in with the intention of protecting viable businesses from eviction or other enforcement measures in relation to rental arrears accrued as a result of COVID-19 lockdown restrictions, the arbitration scheme (the “Scheme”) provided for under the Commercial Rents (Coronavirus) Act 2022 (the “Act”) has now ended. Its expiry sees the lifting of all remaining … Continue Reading

Energy Prices Decrease as Interest Rates Increase – where does this leave UK Businesses?

Following the UK government announcing that UK businesses will benefit from a reduction in energy costs to help combat rising energy costs, details of the proposed scheme have now been released. Under the scheme, a discount will be automatically applied to the bills of those businesses that are eligible to receive it, namely businesses that … Continue Reading

Support for businesses following the UK government’s announcement about help with energy costs

Last week, the new Prime Minster announced a 6 month scheme to help businesses with rising energy costs.  Although further details are awaited, the scheme is likely to reflect the support being provided to consumers, by offering a guarantee that discounts the unit costs for gas and electricity.  Recognising that businesses have not benefitted from … Continue Reading

(UK) Court Crams Down HMRC in the latest SME Restructuring Plan

There has been very little to indicate how HM Revenue and Customs (“HMRC”) might approach a restructuring plan (RP), following HMRC’s preferential status being restored in 2020.     The reinstatement of HMRC as a preferential creditor potentially makes company voluntary arrangements non-viable if HMRC do not support, but what about RPs?   RPs introduced for the first … Continue Reading

(UK) Insolvency litigation and funding—can the court limit relief to the amount required to place the company ‘on the cusp’ of solvency?

In PGD (in liquidation) Manolete Partners plc v Hope Mr Justice Zacaroli considered whether it was possible and/or appropriate to limit the quantum of relief granted in insolvency litigation to the amount required to pay the liquidation debts, costs and expenses where the claim had been assigned to a third-party litigation funder. Zacaroli J held … Continue Reading

Recent data reveals how much it might cost to enter a moratorium

Although there have not been many moratoriums since they were introduced, there have been a few, and according to data collected for this recent interim report, the costs of appointing a monitor and entering into a moratorium appear to be fairly reasonable.  This will provide comfort to both corporates and practitioners who (understandably) might be … Continue Reading

Personal liability for PAYE, and all that Hoey (UK)

The Court of Appeal recently handed down its judgment in the Hoey case. The case is noteworthy because it helps illustrate the extent of HMRC’s powers to collect tax by shifting compliance obligations from one person to another. As can be readily appreciated, this could be particularly of note for directors of companies that have … Continue Reading

(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
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