“He has extensive offshore experience that is invaluable in understanding the structures that we are often dealing with” “Sam is enormously bright, very hard working and a super-pleasant fellow” “Sam combines sound technical knowledge with a great demeanour and client manner”

Questions & Answers

“He can always see where a deal can be cut to secure recoveries cost effectively” “Nick is a very well-known and highly successful practitioner” “He has a thorough, encompassing and determined approach to cases”

Questions & Answers

The Government has announced the relaxation of the rules which were put in place in order to restrict the use of winding up petitions during the coronavirus pandemic. The changes, which come into effect on 1 October 2021 and will remain in force until 31 March 2022, are likely to prompt a significant increase in the number of petitions being presented to the court given the ever-increasing level of debt that has accumulated as a result of the pandemic.

As Andrew Jones and Daniela Miklova report, the recent case of Ristorante Limited t/a Bar Massimo v Zurich Insurance plc [2021] EWHC 2538 is a useful insight into how the Court will interpret the questions and answers in insurers’ proposal forms in coverage disputes. It also shows how insurers can lose potential policy defences through the drafting of proposal form questions going wrong.

OVERVIEW

Welcome to the next edition of the insolvency insight bulletin from the insolvency specialists at Quadrant Chambers. All cases link to the relevant judgments.

Legislationu6

The High Court has today given judgment in the insolvency case of Young v Nero Holdings Ltd [2021] EWHC 2600 (Ch), determining that the company voluntary arrangement ("CVA") which was on the brink of approval by creditors was not capable of challenge by an aggrieved (yet well supported) landlord, Ronald Young.

The High Court has dismissed an application by a landlord creditor to overturn a company voluntary arrangement (CVA) implemented by coffee shop chain Caffé Nero. The CVA, previously approved by its creditors, compromised rent arrears and reduced future rents for the company's premises. The decision follows a series of previous high-profile challenges to retail and leisure CVAs.

The new month sees a partial re-instatement of the legislation permitting creditors to serve winding up petitions on companies. However, the UK Government has adopted a softly, softly approach; this is seen from the temporary increase in the amount that must be owed from the modest £750 to £10,000 and the requirement for creditors to seek proposals for payment from a debtor business, giving them 21 days for a response, before they can proceed with winding up action. The measures are said to protect small businesses as they seek to rebuild their stability.

In this article we look at current trends and developments at the intersection between insolvency and dispute resolution, including a rundown of some of the latest legislative changes, and issues to consider when litigating against parties in financial distress.

This analysis was first published on Lexis®PSL on 27 September 2021 and is republished with their kind permission.

Corporate Insolvency and Governance Act 2020

Anthony Riem is recognised as “a supreme strategist” by sources who compliment his “very commercial attitude to litigation”.

Questions & Answers