Tag Archives: restructuring

Restructuring Plans: A Final Lifeline for the UK Care Sector?

The challenges facing the care sector are not news to anyone. However, as we enter 2023, a sector which has historically operated on thin margins may be about to hit breaking point, with the number of insolvencies involving residential care businesses having increased by 59% in the last year alone. Is it possible to identify … Continue Reading

How Will The German Supply Chain Act Affect German Companies?

Businesses around the globe, including those situated in Germany, continue to face difficulties because of disruptions in their supply chain created, in particular, by COVID-19 and the war in Ukraine. To add to that, the new German Supply Act on Corporate Diligence Obligations in Supply Chains (the “Act”) is likely to place further pressure on … Continue Reading

Potential Impact on the French Legal System of the Draft EU Directive to Harmonise Insolvency Laws

On 7 December 2022, the European Commission unveiled a draft directive (2022/0408 (COD)) (the “Directive”) proposing to harmonise certain aspects of insolvency laws across the European Union[1]. This blog specifically discusses the impact of the draft Directive on French law. For a more detailed and general analysis of the draft Directive, see our alert. The … Continue Reading

(UK) 2023: The Year of the Restructuring Plan?

It is difficult to predict what 2023 might hold for businesses in the UK.  Given the difficult economic environment, many will already be facing a challenging start to the year.  Although the challenges of the pandemic (such as lock downs) have gone, others have materialised. Energy price hikes and inflation rises continue to make trading conditions tough. At some point in 2023 affected businesses may have to restructure, and others may need to enter a formal process. … Continue Reading

The Register of Overseas Entities From a Restructuring and Insolvency Perspective

The requirement for overseas entities to register or be registered on the UK Register of Overseas Entities (ROE) at Companies House could impact certain transactions that insolvency practitioners (IPs) and lenders are involved with.  Our latest quick guide highlights some of those areas and flags points for IPs and lenders to consider when dealing with … Continue Reading

Cross Border Recognition, 25 years on: the view from each side of the Pond

The recent decision in Re Astora Women’s Health LLC illustrates the importance of cross-border recognition of insolvency processes, highlighting the benefits of a joined-up global approach which recognises that modern business do not stop for international borders. With Astora hot off the presses and the twenty-fifth anniversary of the UNCITRAL Model Law on the horizon … Continue Reading

Important Questions Answered As the UK Court Rules for the First Time on Issues Affecting Failed Energy Supply Companies

Devinder Singh, a restructuring and insolvency partner in SPB’s Birmingham office, acted for one of ten applicants in an application for directions made in the High Court by a number of officeholders following the collapse of several energy supply companies (“ESC”). The application sought directions on a number of key issues affecting the energy industry … Continue Reading

To Complete or not to Complete – “Early” Completion of Company Voluntary Arrangements (UK)

Can a Company Voluntary Arrangement (“CVA”) complete, but still remain in place and bind creditors? The simple answer is yes; but it does require (a) the terms of the CVA to be carefully drafted to allow notice of completion to be filed before the end of the CVA term; (b) compliance with the terms of … Continue Reading

Standing to Challenge: Will the Australian Courts Continue to Assist Aggrieved Stakeholders as the Economic Uncertainty Remains?

Insolvency practitioners (IPs) often occupy quasi-judicial offices which, among other things, require them to, assess and adjudicate on competing claims, take coercive and enforcement actions and complete potentially contentious transactions. They must discharge their legal and equitable duties whilst maintaining objectivity and, whilst recognising and appropriately balancing the interests of a diverse range of stakeholders. … Continue Reading

Germany’s Insolvency Code Amended In Light of Current Economic Crisis

The Law on the Temporary Adaption of Restructuring and Insolvency Law Provisions to Mitigate the Consequences of the Crisis (SanInsKG) was published in the German Federal Gazette (Bundesanzeiger) today (8 November 2022) and will become effective in German law tomorrow (9 November 2022), following a very quick legislative process. Purpose of the SanInsKG SanInsKG is … Continue Reading

A Hastie Decision? (Australia)

Economic, trading and supply chain uncertainties persist and are particularly pronounced in some sectors including infrastructure and construction where sub-contractors often feel significant pressure points. In our latest Australian insight, following the Federal Court rejecting the liquidators’ proprietary interest claims in the proceeds of performance bonds and upholding the head-contractor’s statutory set-off rights, we consider … Continue Reading

Understanding Pandemic Supply Chains

Supply chain disruption was exacerbated by the pandemic, and due to the ongoing conflict in Ukraine problems continue to impact UK businesses. Unfortunately there is no sign of disruptions abating in the short term. In a recent webinar Sarah Rathke explored the question: “Why is Everything Broken? Understanding Pandemic Supply Chains” which is available to view … Continue Reading

Statutory Declarations when Appointing UK Administrators – what happens if the remote-swear guidance is not followed?

We look once again at the recent case of Re Active Wear Limited (in administration) (our other blog on another aspect of this case can be found here). As part of the changes introduced in light of Covid-19, the Temporary Insolvency Practice Direction (MIPD) was introduced, to enable statutory declarations on notices of intention to … Continue Reading

Door Closes On UK Rent Arrears Scheme

Brought in with the intention of protecting viable businesses from eviction or other enforcement measures in relation to rental arrears accrued as a result of COVID-19 lockdown restrictions, the arbitration scheme (the “Scheme”) provided for under the Commercial Rents (Coronavirus) Act 2022 (the “Act”) has now ended. Its expiry sees the lifting of all remaining … Continue Reading

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
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