Business Recovery: How Should UK Companies Approach HMRC for Support?

By Rachael Markham and Squire Patton Boggs on Posted in UK

HMRC form with moneyAs part of our business recovery and resilience series, our third video from Rob O’Hare (PSL in our Tax  team), responds to the question: How should companies approach HMRC for support and what support might they expect?  To listen to Rob’s answer click here.

We will also shortly be releasing an alert explaining the situations when directors can be made personal liability to pay a company tax liabilities.

Our previous videos answering  As we are coming out of the COVID crisis, what should directors be thinking about? and There hasn’t been a wave of insolvencies, is business stress still there or are we through the worst of it? can be accessed through our previous blog.

Business Recovery: What Should UK Directors Be Thinking About Now?

By Rachael Markham and John Alderton on Posted in UK

In the second of our short videos in relation to business recovery and resilience, John Alderton (Partner in our Restructuring & Insolvency team), responds to the question:

As we are coming out of the COVID crisis, what should directors be thinking about?

Please click here to listen to John’s answer.

This series of videos are extracts from our business viability webinar, where our panel of experts considered business viability in the current climate, a full recording of which is available here.

We have previously shared our video answering this question:  ‘There hasn’t been a wave of insolvencies, is business stress still there or are we through the worst of it?’ and shared our business viability guide which directors may also find useful.

How to Identify Distress in Your UK Business and Companies You Do Business With

By Rachael Markham on Posted in UK

Identifying distress in your own business or those that you do business with is vital to ensuring its financial health.

Some distress indicators are due to external circumstances beyond the control of the directors, but nevertheless can pose a threat to the ongoing success of the business, others are internal, indicating that the directors may need to make operational or financial changes.

The purpose of this guide is to help directors identify distress early.

UK Business Recovery and Resilience: Key Questions Answered

By John Alderton on Posted in UK

In the first of our short videos in relation to business recovery and resilience, John Alderton (Partner in our Restructuring & Insolvency team), responds to the question:

‘There hasn’t been a wave of insolvencies, is business stress still there or are we through the worst of it?’

Please click here to listen to John’s answer.

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

By Rachael Markham on Posted in UK

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 allegations of unfair prejudice and material irregularity, and in a huge blow for landlords the court upheld the New Look CVA, essentially finding that the manner in which landlords’ claims had been dealt with in the CVA was fair.  It was not therefore unsurprising that the landlords sought to appeal the judge’s findings.

The appeal was eagerly anticipated, since, a Court of Appeal decision in New Look, whichever way it went, could have had a profound effect on the landlord community (either by making it extremely difficult for landlords to use the threat of a challenge to negotiate a better deal or putting a ‘nail in the coffin’ for companies wishing to use a CVA to compromise landlord claims ).  The hearing was due to take place on 1 and 2 March 2022 but almost one year on from the High Court hearing, the matter was settled the evening before the appeal hearing was due to  start – although the terms of settlement are unknown. Accordingly, the Court of Appeal will not get an opportunity to re-consider the points raised by landlords in challenge.

Following the outcome of the High Court decision last year, we produced a number of detailed alerts, titled “Making Sense of CVAs Post New Look and Regis”, which considered:

Given that the High Court decision stands, these alerts set out the most up-to-date position

We do not expect this to be the end of landlord challenges to CVAs, but for now, the High Court’s decision in New Look sets out the parameters of a CVA and how they can deal with landlord claims.

The Bankruptcy Court’s Ruling is in: J&J’S Texas Two-Step Does Not Constitute A Bad Faith Filing

By Norman N. Kinel on Posted in US

Last week this author delved into what has become known as the “Texas Two-Step,” the arguments for and against its permissibility and the broader implications for the bankruptcy system.  The discussion focused on an ongoing trial on motions filed in the bankruptcy case of LTL Management, LLC (“LTL” or the “Debtor”), a Johnson & Johnson (“J&J”) subsidiary, by the Official Committee of Talc Claimants and several other parties, seeking an order dismissing the Debtor’s case pursuant to section 1112(b) of the Bankruptcy Code on the basis that the case was not filed “in good faith.”  In re LTL Mgmt. LLC, Case No. 21-30589 (MBK) [Docket No. 1572] (Bankr. D.N.J. 2021).  Following conclusion of a five day trial, last Friday Chief Bankruptcy Judge Michael B. Kaplan of the District of New Jersey denied the motions in a 56 page opinion, which can only be described as both a passionate defense of the ability of bankruptcy courts to effectively adjudicate mass tort cases as well as a whole-hearted stamp of approval of the Texas Two Step strategy as implemented by the Debtor under the particular facts of its case.  In a separate ruling (which will not be discussed here), Judge Kaplan granted the Debtor’s motion to extend the automatic stay to J&J and other related parties in order to halt ongoing related litigation which could adversely impact LTL’s bankruptcy estate. Continue Reading

Managing Your European Business in Light of Sanctions imposed on Russia

By Rachael Markham on Posted in Cross Border, EU, UK

Distributed ledger technologyThe 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 on the ground in Ukraine following recent developments, and the impact of sanctions imposed by countries globally in response to Russia’s actions, are likely to cause further problems for businesses.

Economists are reporting that we are likely to see existing supply chain problems exacerbated, increases in the costs of commodities and further increases in energy prices that have already seen sharp rises.

As with COVID-19 the impact of an unforeseen events such as these, could have both immediate and longer terms impacts on a business.  The pressures are different to those posed by lock-downs and other restrictions on businesses during 2020 and 2021, but the manner in which those pressures can be managed and key considerations about business viability remain the same.

During the course of the pandemic we shared many blogs and materials designed to help UK and other European businesses, and have recently re-launched our webpage that includes for various European jurisdictions our guides to

  • financial support;
  • directors’ duties;
  • managing supply chains; and
  • quick guides to assessing business viability.

Our main hub, which provides access to the available guides, can be accessed here.

To read what other risk management steps can be taken now, in light of sanctions imposed on Russia, please see this Insight prepared by colleagues in our commodities, shipping and international trade and policy teams.

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

By Squire Patton Boggs on Posted in UK

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 resort) process for energy suppliers.

Dan Butters, Matthew Smith and Matthew Cowlishaw (the “Special Administrators”) have now published their proposals for Bulb. In this blog, we provide an update on the steps taken by Bulb’s Special Administrators to date and their proposals. Continue Reading

Group Costs Orders in Australia

By Squire Patton Boggs on Posted in Australia

In our latest article as part of our litigation funding series, we consider the decision of the Victorian Supreme Court to award a group cost order (GCO).

Although it is perhaps too early to be certain whether GCOs will work as the legislature intends (and they are currently only available in Victoria) there are a number of benefits to GCOs which we also discuss in more detail alongside this decision.  To read our third article in the series, see here.

In our previous articles we consider Australia’s litigation funding reforms and the recent court decision in Arrium where the court upheld the examination rights of eligible applicants.

The “Texas Two-Step” Firestorm: This Is No Dance!

By Norman N. Kinel on Posted in US

In recent weeks, a move dubbed the “Texas Two-Step” has leaped from coverage first in publications geared only for the professional restructuring community, then to the mainstream press, then to hearings before the United States Senate Judiciary Committee, and now to a full-blown trial ongoing in a New Jersey bankruptcy court.  For those not closely following the action (perhaps thinking this was merely some new dance craze), a brief explanation of the Texas Two-Step strategy, the arguments for and against its permissibility and the broader implications for the bankruptcy system as a whole are discussed below.

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