Tag Archives: insolvency

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

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

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

UPDATED Global Insolvency Report: Impact of Covid-19 on Insolvency Laws

Both Spain and Italy have introduced recent changes to their insolvency laws. The changes are covered in our global guide and cover: Spain The obligation for a debtor to file for bankruptcy within two months of becoming insolvent is suspended until December 31 2021. Updates to the Modification of the Creditor’s agreement measures. Postponement of … Continue Reading

You Shall Not Pass – Bankruptcy Court in Intelsat Grants Debtors’ Motion to Seal Hearing

On April 19, 2021, the United States Bankruptcy Court for the Eastern District of Virginia granted a motion (the “Seal Motion”) filed by the Intelsat S.A. debtors (the “Debtors”) to seal the hearing on the Debtors’ motion to extend exclusivity and motion to compel plan mediation.  Although bankruptcy courts routinely grant motions to seal content … 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

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

UK Government Consultation- Restoring Trust in Audit and Corporate Governance- A Directors’ Duties and Insolvency Perspective

The Government has issued a consultation paper  regarding statutory audits and financial reporting. The consultation makes proposals in relation to four areas, namely directors, auditors and audit firms, shareholders and the audit regulator. We have previously summarised the proposals impacting the purpose and scope of an audit. This post will focus upon the matters affecting … Continue Reading

Examination and Prosecution Risks Will Increase for Australian Directors and Third Parties Amid the Economic Uncertainty

For the past year, many Australian businesses, ranging from very significant publicly listed corporations, to much smaller family businesses, have benefited from public and private relief measures intended to soften the impact of COVID-19. Although those measures were introduced as a direct result of pandemic-related concerns, the economic reality in many sectors was already uncertain … Continue Reading

UK Government Extends Coronavirus Job Retention Scheme

Following the UK Prime Minister’s announcement on Saturday night that England will enter a second national lockdown on Thursday 5 November, HM Treasury has confirmed that the Coronavirus Job Retention Scheme (CJRS) that was due to close at the end of October will be extended for a month (for now!). The introduction of the Job … Continue Reading

UK Directors Now Face Potential Liability for Company Taxes

While much of the focus of the insolvency and restructuring world has (rightly and understandably) been on the fundamental changes introduced under the Corporate Insolvency and Governance Act 2020, it is worth remembering that there have been major tax changes too. The Finance Act 2020 introduced new rules making directors, shadow directors and certain others … Continue Reading
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