Tag Archives: restructuring

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

Economic Distress and the Risk of being Knowingly Concerned in the Contravention of Others (Australia)

As global economies continue to experience uncertainties, it is likely that financial service providers and their dealings with consumers and small businesses will come under the microscope. Masi Zaki and Kate Spratt consider those issues from the perspective of of Australian Financial Service Licence holders in our latest alert.… 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) 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

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

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

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

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 … Continue Reading

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

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 … Continue Reading

(UK) Keeping the (light) Bulb on special energy administrations – what will happen next to Bulb ?

We discussed the announcement that Bulb Energy Ltd (“Bulb”) was due to be placed into special administration in our previous blog outlining how the rules for energy supply companies work, the supplier of last resort (“SoLR”) regime and what energy supply company special administration entails. In this blog we look at why it was necessary … Continue Reading

Restructuring Foreign Companies in England Using a Restructuring Plan

A restructuring plan may well be a very effective way of restructuring a foreign company. It has several advantages over a scheme of arrangement and with a relatively low entry threshold, the English court has already sanctioned at least one plan for a foreign company in the relatively short time that it has been available.  … Continue Reading

New UK Rules Governing Unpaid Commercial Rent

Landlords and tenants have both had their own struggles with paying or recovering rent during the COVID-19 pandemic. Rent arrears accrued during 2020 as sectors, such as retail and hospitality, remained closed for a large part of the year and in an effort to support businesses get back on their feet, landlords were prohibited from … Continue Reading

Settling Tax Debts: How Much Support Will HMRC Provide To Your UK business?

Following the UK business secretary offering assurance that HMRC will take a ‘cautious approach’ to recovering tax debts (see our previous blog), HMRC has now published guidance outlining its approach. This guidance also explains how HMRC might respond where a business has taken advantage of one of the government backed lending schemes (such as a … Continue Reading

New Look and Regis from a UK Insolvency Practitioner’s Perspective

In our second alert in the series we consider the key takeaways for UK insolvency practitioners following the CVA challenges in New Look and Regis.  Our alert considers the following: Nominee’s duties Risks to fees Disclosure requirements Discounts and formulas for calculating landlord claims for voting purposes; and The shape of post-pandemic CVAs To read … 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
LexBlog