Shlosberg v Avonwick Holdings Ltd & Ors [2016] EWHC 1001
Law firm Dechert LLP has been ordered to cease acting for the principal creditor of bankrupt Russian businessman, Mr Shlosberg, because it also acted for the trustees in bankruptcy, and accordingly had had access to documents subject to Mr Shlosberg's legal professional privilege.
Facts
This briefing is the first in a series of 3 briefings about the Third Parties (Rights Against Insurers) Act 2010 which we will be publishing over the next fortnight.
The pros and cons every claims professional needs to know – part 1
Litigation
Lender not obliged to advise borrower about onerous term
In Finch and another v Lloyds TSB Bank Plc and others, the High Court considered whether a lender had a duty to advise a borrower about a clause in its loan agreement making it liable for the bank's hedging break costs if the borrower chose to repay a fixed rate loan early.
It is estimated that there were almost 40,000 Protected Trust Deeds (“PTD”) entered into between 2005 and 2010. Similar to an IVA, a PTD is a voluntary arrangement in which the debtor conveys his estate to an insolvency practitioner (“the Trustee”) to be held on trust for the benefit of creditors. A large number of those who enter into a PTD do so because of borrowing that they have incurred on credit cards.
Until recently the oil and gas sector has not been on the restructuring communities radar. However, last year global oil prices hit an all-time low, which led to a record number of insolvencies in the industry. Consequently in conjunction with Lexis Nexis we have produced the Guide to insolvency in the UK oil and gas industry.
Facts
The respondents applied to set aside an order permitting the liquidators to serve the ‘Main Application’ on the respondents out of the jurisdiction (‘Set Aside Application’). Grounds of the application were: (i) the liquidators could not establish a serious issue to be tried/ reasonable prospect of success on the Main Application; and (ii) the initial without notice application had been procured by misrepresentation and/or material non-disclosure.
This article originally appeared on LexisNexus.com
Produced in partnership with Susan Kelly, Caroline Castle and Ben Holland of Squire Patton Boggs.
Introduction to Common Participants in the Market
The oil and gas industry is a significant contributor to the UK economy:
References:
House of Commons Library Briefing Paper: UK offshore oil and gas industry 22 March 2016
Unless you have been hiding in an igloo in Antarctica for the last year you could not possibly have missed the media furore over the huge pension liabilities of eminent companies that have become insolvent. BHS, a venerable British retailer, is the most high profile after recently entering administration with an estimated pensions deficit of £571m.
The recent case of Re Ralls Builders Limited has confirmed that in circumstances where the company is heading for liquidation directors cannot escape a wrongful trading claim by ignoring individual creditors. It emphasises the importance of taking the correct legal advice at an early stage.
On 12 February 2016 Snowden J handed down his judgment in Indah Kiat International Finance Company B.V. [2016] EWHC 246 (Ch). Indah Kiat International Finance Company B.V. ("Indah Kiat"), part of the global Asia Pulp & Paper Group (one of the world's largest pulp and paper manufacturers), applied for an order convening a meeting of scheme creditors to consider and, if thought fit, approve a proposed scheme of arrangement (the "Scheme") under Part 26 of the Companies Act 2006.