A recent ruling of the German Federal Civil Court (Bundesgerichtshof (“BGH”)) is a reminder of the risks which shareholders of a German company can face in an insolvency of their German subsidiary. Under the German Insolvency Code (“InsO”), claims for repayment of a loan granted by a shareholder who holds more than 10% of the … Continue Reading
As of 1 January 2018, those who are obliged to file a petition for declaration of bankruptcy of a company will face stricter liability in Slovakia. This could result in them being required to pay a fine/damages and can even result in their disqualification from sitting on boards of Slovak companies. In addition to an obligation to pay a … Continue Reading
Do a lessee’s possessory interests in real property survive a “free and clear” sale of the property under section 363 of the Bankruptcy Code? In a recent decision, the Ninth Circuit Court of Appeals said “no,” holding that section 365(h) did not protect the interest of the lessee in the context of a section 363 … Continue Reading
With the UK festive season now merrily in swing, credit cards maxed out on Black Friday and Cyber Monday bargains and Christmas shopping well under way, will the lure of the Christmas spirit be enough to tip some people over the edge into unmanageable debt? For many the holiday season is a time to adopt … Continue Reading
The recent Court of Appeal decision in Horton v Henry has highlighted the protection afforded to a bankrupt holding a private pension to the detriment of his bankruptcy creditors. Facts The bankrupt, Mr Henry, was the holder of a number of pension policies all of which contained provisions entitling him to make elections which would trigger rights to … Continue Reading
A recent decision from the Bankruptcy Court for the District of Delaware further puts into doubt so-called bankruptcy blocking tactics. And the opinion from In re Intervention Energy Holdings, LLC, No. 16-11247, 2016 Bankr. LEXIS 2241 (Bankr. D. Del. June 3, 2016), is especially notable because it relies on federal public policy, rather than state … Continue Reading
Michael Cuda, Max Tucker and Susan Kelly have written an article for Corporate Rescue & Insolvency analysing the increase in US oil and gas bankruptcies as a direct result of the declining oil price, and the related decrease in the borrowing base availability. This has led to a number of Chapter 11 proceedings throughout the … Continue Reading
Carrington Wire Defined Benefit Pension Scheme was set up for the benefit of the employees of Carrington Wire Limited; a Yorkshire based company engaged in the sale and supply of steel and wire products. Carrington, which started to wind down its business at the end of 2009, was at that time owned by Severstal, a … Continue Reading
Imagine: you are a lender that has loaned substantial sums of money to an individual, secured by real property owned by the borrower. After the borrower defaults and negotiations fail, you seek and obtain the appointment of a receiver. But now litigation ensues—about the loan documents, about contract defaults, about interest rates, about foreign law. … Continue Reading
Whether you read about it in the paper, hear it on the news or get the word from a colleague, it is always a shock to learn that a valued customer or supplier has filed for bankruptcy. Aside from cursing your misfortune, what do you do next? There are a number of steps you can … Continue Reading
