The Court of Appeal has recently referred to established case law that the court will only interfere with the act of an officeholder “if he has done something so utterly unreasonable and absurd that no reasonable man would have done it”.
While the judge in the lower court had not made any error of law, on the facts there were identifiable flaws in the judge's reasoning that the trustees' decision not to join in the proceedings was perverse.
The judge had failed to recognise that:
Der Bundesgerichtshof (BGH) hat am 29. Juni 2023 entschieden, dass ein Rechtsanwalt wegen Beratungsfehlern zu Zahlungen nach Insolvenzreife gegenüber dem Geschäftsführer haften kann, auch wenn er das Unternehmen und nicht die/den Geschäftsführer persönlich berät (IX ZR 56/22, ZInsO 2023, 1642).
The UK Corporate Insolvency and Governance Act 2020 (CIGA) introduced temporary measures to provide companies with the flexibility to continue trading during COVID-19. CIGA also enacted a package of permanent measures to maximise the survival prospects of viable companies.
The reforms implemented through CIGA are the most significant change to the UK’s corporate insolvency regime in 20 years. This article looks at how those reforms have taken shape over the last three years, with reference to the Insolvency Service's Post-Implementation Review of CIGA.
The Insolvency Service has published its official three-year Post Implementation Review of the Corporate Insolvency and Governance Act 2020 (CIGA). The Review focused on the three permanent measures:
Re Gatecoin Limited (Gatecoin) is a landmark decision concerning the winding-up of a cryptocurrency exchange.
Background
Liquidators secured over 50 types of cryptocurrencies with an aggregate value of over HK$140m. To aid the liquidator’s allocation of the seized cryptocurrencies, the Court of First Instance decided two key issues.
Decision
The court held that:
This case concerned the immunity of receivers from claims, where the Court had approved the sale of assets over which they were appointed.
Background
Following a dispute between two shareholders of Blackpool Football Club Limited (BFCL), receivers were appointed by the court over certain assets related to Blackpool Football Club, including the shares held by the majority shareholder in BCFL, Denaxe Limited (Denaxe).
During the marketing process, the receivers concluded the best way forward was to sell the assets as one complete package.
The German Federal Court of Justice (BGH) in its ruling of 12 January 2023 (IX ZR 71/22) clarifies the requirements for proving an 'intent to disadvantage creditors' that it established in its landmark ruling of 6 May 2021.
Background
It is no secret anymore that the MiCA (Markets in Crypto-Assets Regulation) is coming. But why is this important for insolvency practitioners and clients? This update aims to give an answer to this question and to provide an outlook on how the German legislator plans to implement these principles.
On 5 July 2023 the Court sanctioned Prezzo Investco Ltd's (Prezzo) restructuring plan despite strong opposition by UK tax authority, HMRC.
HMRC has taken a more active approach to opposing restructuring plans and was successful in blocking the plans recently proposed by GAS and Nasmyth (see our alert).
A company must apply for insolvency in Germany if it is either illiquid and/or over-indebted. Illiquidity must be confirmed where the debtor is not capable of meeting at least 90 % of all claims with its liquid assets within 3 weeks (section 17 of the German Insolvency Code).
Real estate assets – effect on liquidity
The Court of Appeal in Braunschweig has recently considered whether a debtor was insolvent due to illiquidity where it owned extensive real estate assets.