On 3 March 2026, following the hearing of an unsuccessful application for directions of the administrators of Kession Capital Ltd, Deputy ICC Judge Curl KC made an order winding up the company. He later gave his reasons in writing for doing so: Re Kession Capital Ltd [2026] EWHC 785 (Ch).

In March 2025 ICC Judge Greenwood gave judgment ([2025] EWHC 597 (Ch)) on two applications of the trustees in bankruptcy of Biraja Pada Bhattacharya and his wife, Susmita Bhattacharya, which resulted in a declaration that the trustees were legally and beneficially entitled to a freehold property, 100 Redcliffe Gardens, London SW10 9HH, which prior to their bankruptcies had been jointly owned by the bankrupts, and ordered the property to be sold with vacant possession, the net proceeds of sale to be paid to the trustees.

The La Perla case represents one of the first real tests of cross-border insolvency between Italy and the United Kingdom in the post-Brexit landscape. The well-known lingerie brand, founded in Bologna in 1954, became embroiled in a complex corporate crisis that culminated in November 2023 with the opening of compulsory liquidation proceedings before the High Court in London against La Perla Global Management (UK) Limited (LPGMUK).

The High Court has dismissed an application to set aside a statutory demand, providing helpful guidance on the high bar debtors must meet to establish a “genuine and substantial dispute” in insolvency proceedings, particularly where challenges are based on default interest, alleged oral representations and Consumer Credit Act 1974 (“CCA 1974”) arguments.

Background

Summary

It has been a while since we have had any cases challenging the fairness of a CVA, but in this recent Scottish decision where HMRC challenged the approval of Petrofac’s CVA on the basis of fairness, the court was required to consider HMRC’s contention that the CVA unfairly prejudiced its interests.

When a company enters administration, one of the administrator’s core statutory duties is to prepare proposals explaining how they intend to achieve the purpose of administration. These proposals must be approved by creditors. While approval is usually a formality, rejection can fundamentally derail the administration, leaving the practitioner without authority to act and, in some cases, forcing an early exit into liquidation.

This article explores the statutory framework, the common reasons proposals are rejected, and the key case law that guides the steps that follow.

The Government’s Insolvency Service has issued its insolvency figures for January 2026 which show that construction is the UK’s worst performing sector for insolvencies in 2025. This is the fourth year in a row that construction has held that position.  Construction accounted for 17% of insolvencies in 2025 ahead of retail on 16% and hospitality on 14%.   The total  number of insolvencies in the UK construction sector was 3,728 but was lower than the 2024 figure for the sector of 4,032 insolvencies.

Market Financial Solutions ("MFS"), the mortgage provider, collapsed suddenly last month. This collapse has intensified scrutiny of asset-based lending practices, where loans are secured against tangible assets, and has renewed focus on the risks of double pledging.

Welcome to the latest edition of Corporate Update.