A petition to secure High Court protection for a chocolate food products company was prepared in secret from its board, the High Court was told, The Irish Times reported. Ina’s Kitchen Desserts is trading, no one is refusing to trade with it, and it also has a plentiful supply of finance to meet its requirements, said Bernard Dunleavy SC for the majority shareholder Starkane. Counsel said Starkane knew nothing of the petition for examinership brought by a director and 10 per cent shareholder Barry Broderick until it was moved.
A Bahamian broker/dealer’s liquidator has voiced concern that its majority shareholder and then-senior management removed over $8m in the two-and-a-half years prior to its insolvency, The Tribune reported. Ed Rahming, the Intelisys (Bahamas) founder and managing director, in his second report to the Supreme Court hinted he was exploring the possibility of initiating legal action against Pacifico Global’s majority shareholder, Arturo Klein, to at least recover some of the $4.263m paid out to him. “The liquidator has noted...
Airlines are on course to lose a total $157 billion this year and next, their main global body warned on Tuesday, further downgrading its industry outlook in response to a second wave of coronavirus infections and shutdowns afflicting major markets, Reuters reported. The International Air Transport Association (IATA), which in June had forecast $100 billion in losses for the two-year period, said it now projects a $118.5 billion deficit this year alone, and a further $38.7 billion for 2021.
German insurers are in the final stages of negotiating a six-month extension to a COVID-19 credit insurance backstop with the German government, Reuters reported. Insurers and the government struck a deal earlier this year for up to 30 billion euros ($35.64 billion) in guarantees for the commercial credit insurance industry for 2020, a move important for fostering the smooth flow of trade during the pandemic. With 2020 winding down, Joerg Asmussen, head of the GDV German insurance association, said an agreement for the extension could be reached “within days”.
British real estate agent Countrywide has appointed former William Hill chief Philip Bowcock as its CEO to lead talks on a new rescue deal, as shareholders rejected an offer from private equity firm Alchemy Partners, Reuters reported. The London-based company, one of several agents hurt by a coronavirus-driven drop in property sales this year, also said on Tuesday that executive chairman Peter Long had stepped down from his role and retired as a director with immediate effect.
Creditors of Yongcheng Coal & Electricity Holding Group Co have agreed to a proposed repayment plan, the bond’s chief underwriter said on Tuesday, after the company missed payments on maturing short-term commercial paper, Reuters reported. Creditors unanimously approved a plan for Yongcheng to first repay 50% of the principal on the 1 billion yuan ($151.88 million) short-term commercial paper, and to extend the repayment period on the remainder for 270 days, China Everbright Bank said in a statement posted on the website of the National Interbank Funding Center.
India’s stressed asset deals are starting to look cosy. Local tycoon Gautam Adani’s roads-to-mining empire narrowly outbid U.S.-based Oaktree with a $4 billion bid for a collapsed housing lender, but it was submitted after a deadline passed and cheekily expanded on its original plan, Reuters reported. It’s the second time in just a few months that the industrialist has blindsided foreign buyers. The higher offer from Adani Enterprises might be welcomed by creditors led by State Bank of India.
A massive increase in projected government debt poses a “major threat” to financial stability in South Africa, the central bank warned on Tuesday, while problem mortgages were also a risk, Reuters reported. South Africa’s government debt is now set to hit 82% of gross domestic product this year as the Treasury grapples with the impact of the COVID-19 pandemic. In its bi-annual review on the soundness of the financial system, the South African Reserve Bank (SARB) said this meant close links between the financial sector and government were now a serious worry.
Canada’s Cirque du Soleil Entertainment Group said on Tuesday it had emerged from bankruptcy, after the COVID-19 pandemic forced the famed circus operator to cancel shows and lay off artists earlier this year, Reuters reported. The once high-flying Cirque, which grew from a troupe of street performers in the 1980s to a company with global reach, has slashed about 95% of its workforce and suspended shows due to the pandemic. It had filed for bankruptcy protection in June and reached a new purchase agreement with secured lenders shortly after.
A spurt of missed debt repayments by three Chinese state-owned firms - a coal miner, a chipmaker and an automobile company - has shaken local markets and heightened speculation that a campaign to wean the economy off heavy credit is back, Reuters reported. The defaults have angered investors, who say their faith in the firms’ top-notch ratings, seemingly sound finances and implicit state backing has been violated.
Resources by Country & Region
The Directive (EU) 2019/1023 on preventive restructuring frameworks ("the Directive") was passed on 20 June 2019 bringing about a change of paradigm in corporate restructuring. A change that should allow the States of the European Union to catch up with countries adhering to the Anglo-Saxon model, both in restructuring and insolvency matters and also upstream, in financial matters, due to the influence of the insolvency legislation on the provision of credit ex-ante.
Was court-life across Europe prepared for the COVID-19 crisis? by José CARLES, Laurent Le PAJOLEC and David ORSULA (Co-chairs of the Insolvency Tech & Digital Assets Wing)
COVID-19 and the correspondent lockdown measures have affected our lives in many ways. From a legal perspective, it has proven that jurisdictions that were already adapted to technology have provided a better response in the administration of justice.
In January 2020, the world woke up facing a phenomenon that some had predicted but few wanted to hear about or were prepared for: a global pandemic, now commonly called the COVID-19 crisis. Immediately, many economists were convinced that the world was heading for a stock market crash and an economic crisis. They were right. The stock market sank, and all countries that imposed strict lockdown measures face a significant contraction in their GDP.
The past experience with the European Insolvency Regulation (2000) has shown that even if all the courts in the Member States are only bound by decisions delivered at the EU level by the CJEU, all interested parties involved in an insolvency case (namely courts, insolvency practitioners, chartered accountants, lawyers and even debtors themselves in certain cases) may find it of great interest to look at the decisions made by other courts in other Member States for guidance.
The proposed new Dutch restructuring law: Wet Homologatie Onderhands Akkoord, or WHOA in short, is expected to be enacted in the second half of 2020. The WHOA will enable debtors to offer a tailor-made, court-sanctioned restructuring plan to all or some of their creditors and shareholders while remaining in control of the company. We expect it will be a better restructuring tool than the UK Scheme of Arrangements or the US Chapter 11.
This updated edition describes the framework of the European Insolvency Regulation Recast (adopted in June 2017), reviews its major rules, highlights the differences from the old EIR 2000, and makes references to the most important and recent cases of the Court of Justice of the European Union. An essential guide for non-European judges, practitioners and scholars who are confronted with this domain of law, as well as anyone dealing with EU-related cross-border cases, this book serves as a concise and comprehensive introduction to the EIR Recast.
Chapter 15 for Foreign Debtors covers all aspects of the UNCITRAL Model Law on Cross-Border Insolvency as well as chapter 15 of the Bankruptcy Code, and provides details about the Foreign Representative, avoidance actions, creditor protections, concurrent proceedings, comity and much more. The book also includes an extensive appendix filled with more than 500 pages of sample case documents and forms related to chapter 15 proceedings.
This book is the latest addition to our list of publications and it provides basic information on Islamic finance. It is meant to be a useful reference tool to the majority of insolvency practitioners who do not work in this field. The chapters in this book were selected on the basis that it is expected that most INSOL members currently have very limited understanding of Islamic finance.
The book has 10 chapters, a country study, and an annexure with a glossary of Islamic finance terms. Following the introductory chapter there are chapters on: