Paul Muscutt, London restructuring partner at law firm Squire Patton Boggs, talks to Andrew Tate, former R3 President, Chair of R3’s Policy Group and Partner at accountancy firm Kreston Reeves LLP, about conflicts of interest in the restructuring and insolvency profession*.… Continue Reading
Cathryn Williams and Paul Muscutt, partners in the Squire Patton Boggs Restructuring & Insolvency team in London, interview Ian Fletcher, Director of Policy (Real Estate) of the BPF (the trade association for UK residential and commercial real estate companies) to get the BPF’s views on the recent spate of CVAs seeking to reduce/compromise lease liabilities.… Continue Reading
The new Insolvency Practice Direction 2016 has finally been given approval by the Lord Chancellor and came into force yesterday (25 April) bringing with it changes to reflect the new Insolvency Rules 2016 and recent changes to the CPR. The new practice direction replaces that of 2014 with immediate effect. Key changes include: clarity on … Continue Reading
An effective and well-equipped insolvency and restructuring regime gives confidence to investors and financiers, enabling credit to flow through to businesses and boost economic activity, growth and innovation. In 1999, following the Asian financial crisis, the World Bank carried out a review of the international regimes to establish a set of key principles for effective … Continue Reading
A great deal of insolvency litigation is funded by non-parties to a claim – for example, by a creditor or an “after the event” (ATE) insurer. Ordinarily such arrangements and their precise terms are confidential and are not required to be fully disclosed to a counterparty in litigation. In the recent case of Re Hellas Telecommunications (Luxembourg) [2017] EWHC 3465 … Continue Reading
Following our post on the failure of Carillion yesterday, Ray O’Connor of our Construction team has written the following article “Carillion’s Insolvency – How to Protect Yourself” which looks at practical ways forward for any sub-contractor, employer/developer or funder involved in a project with Carillion. In the event any advice is required on any issues … Continue Reading
On 15 January 2018, Carillion, the UK’s second-largest builder and one of the Government’s largest contractors, was placed into compulsory liquidation and the Official Receiver was appointed as liquidator, with Michael John Andrew Jervis, David James Kelly, David Christian Chubb, Peter Dickens, David Matthew Hammond and Russell Downs of PwC being appointed as special managers … Continue Reading
The recent case of Farnborough Airport Properties Company and another v HMRC is noteworthy for the light it shines on the dimly lit and often difficult interaction between tax law and insolvency. The issues The two companies operating Farnborough Airport (the host of ‘the largest industry event on the aerospace calendar’) were members of the … Continue Reading
The FCA Chief Executive Andrew Bailey announced 0n 27 July 2017 that market participants should not rely on the London Interbank Offered Rate (“LIBOR”) being available long term. The announcement made it clear that the long-standing benchmark used both in the UK and the US is to be replaced. The speech presented by the FCA’s … Continue Reading
There are various ways misconduct can be reported in respect of companies and individuals. Establishing which authority has the power to conduct investigations of wrongdoing depends to a certain extent on the status of the companies and individuals. The Insolvency Service is empowered by law as the proper authority to investigate transgressions such as serious corporate abuse and the conduct of … Continue Reading
What is the GDPR? The General Data Protection Regulation (GDPR) is an EU regulation designed to strengthen and harmonise data protection rules for processing data of all individuals within the EU and covers the transfer of such personal data outside the EU. One of the aims of the new legislation is to give control back to individuals … Continue Reading
The new school year is upon us and once again the education sector (and particularly funding for institutions from primary school right through to further education) is in the spotlight at a time when growth continues to stagnate. Education providers are continuing to encounter financial risk as a result of increase in investment requirements outstripping growth. These factors coupled with … Continue Reading
The British press reported this week that packed UK beach resorts over the August bank holiday weekend enjoyed their biggest-spending tourism weekend of 2017. Some £2.5 billion is expected to have been spent as about 17 million Britons took a holiday or day trip. VisitEngland reported that around a million headed to Cornwall, with 450,000 … Continue Reading
Paul Muscutt and Cathryn Williams, of the Squire Patton Boggs Restructuring & Insolvency team in London, analyse the current restructuring market with Blair Nimmo, UK Head of Restructuring, KPMG.… Continue Reading
The summer of sport in the UK is well underway, with the Wimbledon championship in its second week and England having navigated the first cricket test against South Africa with a resounding victory. The British & Irish Lions even drew the test series against the All Blacks and hopes are high of Andy Murray winning … Continue Reading
From June this year, several specialist courts of the High Court of England and Wales are being banded together under a new title – “THE BUSINESS AND PROPERTY COURTS OF ENGLAND AND WALES”. The idea is to give these specialised courts a memorable and (it is hoped) user-friendly umbrella title, whilst still preserving the value of the … Continue Reading
As of 25 April 2017, for courts within the Chancery division of the High Court in London, the filing of all applications, forms and documents must be performed electronically. This includes the Bankruptcy and Companies Courts within Greater London. It does not apply to the High Courts outside London. Where once a lawyer might expect … Continue Reading
The recent Court of Appeal case of JCAM Commercial Real Estate Property XV Limited v. Davis Haulage Limited [2017] EWCA Civ 267 has set out the importance of there being a settled intention to enter administration and indicated that this is a pre-requisite to an out of court appointment being validly made. The judge at first … Continue Reading
On 6 April 2017, the new Insolvency Rules come into force which will affect creditors’ rights in most insolvency procedures. The changes are designed to ensure insolvency processes are as efficient and streamlined as possible in order to maximise returns to creditors by reducing costs whilst retaining safeguards to avoid abuse or injustice. Whether you are … Continue Reading
Dickinson v NAL (Realisations) Staffordshire Ltd is a useful case on how directors’ duties are looked at following a formal insolvency and ways in which an office holder can challenge transactions if there is evidence of wrongdoing or a concerted strategy to frustrate creditors’ recourse to a Company’s asset base which would ordinarily be available … Continue Reading
An employment tribunal has recently confirmed that employees who have been unfairly dismissed from an insolvent employer can bring an action against a connected successor company. The tribunal held that there was a ‘commonality of ownership’ between the original and successor companies and that it was correct as a matter of public policy that employees should be able … Continue Reading
The recent case of Re Newtons Coaches [2016] EWHC 3068 considered whether a partnership falls within the remit of s.216 Insolvency Act 1986 (“IA 86”). The case looked at what s.216 is designed to prevent and the nature of partnerships in the context of both the Insolvent Partnerships Order 1994 (“IPO 94”) and the IA … Continue Reading
The recent successful appeal in Brooks and another (Joint Liquidators of Robin Hood Centre plc in liquidation) v Armstrong and another [2016] EWHC 2893 (Ch), [2016] All ER (D) 117 (Nov) has clarified and highlighted the complexities of bringing a wrongful trading claim and the importance of correctly quantifying losses for which directors can be made … Continue Reading
In the case of Re BW Estates Ltd the High Court considered the validity of a directors’ out of court appointment in circumstances where there was technically an inquorate directors’ board meeting. It was held that the appointment was not invalid despite only one director being present at the meeting convened to put the company into administration in … Continue Reading
