What is a Bankruptcy Petition?
A bankruptcy petition, put simply, is a petition to the Court to ask for a bankruptcy order against an individual and is usually presented on the grounds that the debtor cannot pay his/her debts. A bankruptcy order can result in the debtor’s assets being sold in order to repay outstanding creditors.
It often follows a statutory demand if you have not complied with that or otherwise sought to set it aside.
Can anyone petition for a debt?
With administration figures creeping back up after falling to low levels during the pandemic, the number of pre-pack sales of businesses in administration also appears to be on the increase. In such transactions, a purchaser acquires all, or substantially all, of the business and assets of the insolvent company from the administrator, with the terms of the deal being agreed pre-appointment and completion usually taking place immediately after the administrator takes office.
The High Court has held an original tenant and guarantor of a lease liable for unpaid sums due where the new tenant had compromised its liabilities under the lease pursuant to a restructuring plan under Part 26A of the Companies Act 2006 (CA 2006). Read on for our analysis of Oceanfill Limited v Nuffield Health Wellbeing Limited and Cannons Group Limited [2022] EWHC 2178 (Ch).
The lease and licence to assign
On 24 February 2022, Russia invaded Ukraine in a major escalation of the conflict between the countries that began in 2014. The invasion by Russia was swiftly followed by international condemnation and a raft of sanctions which imposed financial, trade and other restrictions on Russia.
How do you improve the image of company voluntary arrangements? Start by reforming the voting rules.
BITE SIZE KNOW HOW FROM THE ENGLISH COURTS
Injunctions
After 10 sanctioned Restructuring Plans (and one declined) it is evident that valuation is key to supporting the court’s decision making process and a focal point for potential challenge.
From 1 November 2022, the Official Receivers' deposit fee to be paid by petitioners initiating a creditor bankruptcy or compulsory liquidation proceeding is to increase. For creditor bankruptcy petitions, the fee will increase from £990 to £1,500 and for compulsory liquidation proceedings it will rise from £1,600 to £2,600. These increases are the first since April 2016 and are reported to have been introduced at least in part due to the relatively low level of recent insolvencies.
On July 7, 2022, the UK Insolvency Service, an executive agency of government responsible for a variety of roles in administering the UK insolvency regime, published a consultation on the UK’s proposed adoption of two UNCITRAL Model Laws on insolvency, inviting responses (the “Consultation”).