Allen & Overy Publications

In this month's banking and finance update we provide a short summary of the LMA changes to its investment grade credit agreement and finance party default provisions.  We review two interesting judgments dealing with the interests of senior lenders and unsecured creditors in proposed schemes of arrangement.  We investigate the role played by business commonsense in the interpretation of contracts and look at an interesting English case regarding the rule against double proof in insolvencies.
 

A summary of the restructuring and insolvency procedures available in Germany. Considers which of the German procedures constitute main and/or secondary proceedings under the EC Regulation on Insolvency Proceedings.

A summary of the restructuring and insolvency procedures available in the US (Chapter 11 and Chapter 7). Also considers Chapter 15 and cross-border application.

A summary of the restructuring and insolvency procedures available in France. Considers which of the French procedures constitute main and/or secondary proceedings under the EC Regulation on Insolvency Proceedings.

Recent consultations and rule approvals have fired the starting gun on recovery and resolution planning for financial institutions. By the end of June 2012, the FSA intends that UK incorporated deposit takers and significant investment firms will be required to have in place a ‘living will’ or ‘recovery and resolution plan’(RRP). This document sets out some background on resolution and RRPs, and discusses how firms can plan for preparing a RRP.

Considers and briefly summarises the options available in England and Wales to a corporate borrower who faces financial difficulties.

Reviews the scheme of arrangement procedure (under the Companies Act 2006) and the voluntary arrangement procedure (under the Insolvency Act 1986), both of which may be used to restructure a company when it is in financial difficulties. Contains a brief comparison of the two procedures and when it may be appropriate to use one rather than the other.
 

An overview of the administrative receivership procedure: who may appoint, the prohibition on appointment (post-Enterprise Act 2002) and the receiver's role.

Summarises the administration procedure, a collective rehabilitation procedure available under the Insolvency Act 1986 which may be used to rescue or reorganise the business or assets of an insolvent company under the protection of a statutory moratorium. The Fact Sheet deals with the new streamlined administration procedure, introduced by the Enterprise Act 2002, which came into force on 15th September 2003
 

An overview of the liquidation procedures (voluntary and compulsory) applicable to companies under English insolvency law.
 

The New York Insurance Law (Insurance Law) was amended to create a safe harbor for closing out certain derivatives transactions entered into with New York insurers that are placed into insolvency proceedings. This is intended to give insurers more access to derivatives as a financial tool and follows a developing trend in insurance regulation, but it remains to be seen whether it is too late to have much impact.

A summary of the restructuring and insolvency procedures available in Malaysia

On December 1, 2011, an amendment to Rule 2019 of the Federal Rules of Bankruptcy Procedure (Rule 2019) took effect, changing the disclosure requirements for committees and groups of creditors or equity security holders, whether formal or informal, that actively participate in bankruptcy cases under chapters 9 or 11 of the U.S. Bankruptcy Code.

A round up of restructuring news for 2011 from across borders. This alert includes commentary by Gordon Stewart: Global Reflections… times they are a-changin', Latest News and Developments including a feature by Philip Wood, Special Global Counsel on the Eurozone Crisis, Key Highlights from around the Globe (UK, France, Spain, Asia/Australasia, Middle East and the US) and Recent Changes to Insolvency Laws.

A summary of the restructuring and insolvency procedures available in Bermuda.
 

A summary of the restructuring and insolvency procedures available in Thailand.
 

A summary of the restructuring and insolvency procedures available in France. Considers which of the French procedures constitute main and/or secondary proceedings under the EC Regulation on Insolvency Proceedings. Also contains a section addressing the new accelerated financial safeguard proceedings (the SFA).
 

The European Court of Justice (ECJ) has given guidance on the strength of the registered office presumption of centre of main interests (CoMI) and the meaning of establishment for the purpose of the EC Insolvency Regulation (the Regulation).

A summary of the restructuring and insolvency procedures available in Taiwan.

Following the publication of the sixth Lehman Brothers International Europe (LBIE) Progress Report for the period 15 March 2011 to 14 September 2011 (the Report), the administrators held an Update Call (the Call) for all LBIE creditors on 21 November 2011. The purpose of the Call was to give the administrators an opportunity to run through the Report, to update creditors on recent developments and to answer questions from creditors