As France lived through its worst economic slump since World War II, business failures slid to the lowest in 33 years, Bloomberg News reported. The number of bankruptcies and firms seeking protection from creditors or entering receivership fell 38% in 2020, as government aid in the face of the coronavirus pandemic kept French companies afloat, according to figures gathered by enterprise-data firm Altares. That may foreshadow a wave of defaults in 2021 and 2022, said Thierry Millon, its head of research.
India’s Supreme Court upheld laws that protect new owners of insolvent companies from charges filed against the previous management in a verdict that could pave the way for faster resolution of big bankruptcies, Bloomberg News reported. A bankrupt company and its assets cannot face criminal proceedings once it is sold to new owners, the Supreme Court said on Tuesday while dismissing petitions challenging the rules. The former management can still be prosecuted.
A decade ago, Joseph R. Biden Jr. strode into a reception room in Athens for a meeting with the president of Greece, a country then drowning in debt and locked in tense negotiations with the European Union. “This man represents the Treasury Department,” a deadpan Mr. Biden said to his host as he gestured to a gray-suited member of his delegation. “He’s brought hundreds of millions of dollars.” The room broke up in laughter: It was clear the vice president hadn’t come with a briefcase of cash to pay off Greece’s debts.
New York-listed Best Inc, a Chinese logistics firm backed by e-commerce giant Alibaba Group Holding Ltd, is considering a sale as part of a strategic review, Reuters reported. With the endorsement of Alibaba, its biggest shareholder, Best has tapped financial advisers to explore options as its shares have been underperforming and are worth a fifth of its IPO price in 2018, two of the people involved in the discussions said.
A tug of war has emerged in Japan between authorities calling on restaurants to close early to stem the spread of the coronavirus, and business owners who say such requests are pushing them past their limits, Bloomberg News reported. With Japan’s virus strategy dependent on voluntary cooperation, the struggle shows the limits of its social compliance model as the pandemic drags on into a second year.
North Ireland is facing an “abyss” once the Brexit “grace period” on imports from Britain ends unless action is taken, one of its major haulage companies has warned, the Irish Times reported. “Northern Ireland’s going to get worse in April if we don’t get some easement,” said Paul Jackson of McBurney Transport in Ballymena, Co Antrim. “As a haulage business this is currently an unsustainable model, and we have to be engaged with directly and we have to have it sorted out before the first of April, we have to.” Mr.
China postponed Kenyan debt repayments due over the next six months, a week after the Paris Club of creditors offered the East African nation similar relief, Bloomberg News reported. Kenya had been scheduled to pay 27 billion shillings ($245 million) to China from January through June, Treasury Secretary Ukur Yatani said Wednesday on Spice FM radio in the capital, Nairobi. The delayed payments were agreed after talks with the Chinese government, he said.
Resources by Country & Region
Adjusting a pre-insolvency scheme to respond to the COVID-19 crisis by Nuno Líbano Monteiro and Catarina Guedes de Carvalho
According to the OECD, Portugal is in the top three countries in terms of implementing new measures to face this COVID-19 pandemic. However, regarding the legal framework of insolvency and restructuring, the only direct, exceptional and temporary measure approved by the Portuguese authorities was to suspend the time limit for the debtor itself to petition for insolvency, with effect from 7 April 2020. No pre-insolvency exceptional measures have been adopted.
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.
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: