As of 1 October 2015, a number of changes have been introduced to insolvency law in the UK with more to follow on 10 October 2015 and then in April 2016.  The key developments implemented in October 2015 will affect both companies and individuals.

From 1 October 2015

Personal Insolvency

Further to the review of pre-pack administration sales (“pre-packs”) by Teresa Graham CBE last year (the findings of which were published in the “Graham Report” and discussed in one of our earlier blogs,Change in Sight for UK Pre-pack Administration Regulation), the key recommendations have now been implemented in order to improve fairness and transparency especially where a pre-pack sale occurs to a connected party.

The  following  changes  which  came  into  effect  on  1  October  2015  will  be  of  interest  to  insolvency practitioners and other professionals who deal with insolvency law:

Key Point

Judgement provides detailed guidance on administrators making distributions in relation to EU incorporated companies.

The Facts

In John David Hedger (the Liquidator of Pro4Sport Ltd) v David Adams [2015], the Liquidator of Pro4Sport Ltd (Pro4Sport) made an application to the Court under section 212 of the Insolvency Act 1986. The claim arose out of one transaction which took place shortly before the liquidation of Pro4Sport on 20 July 2012. On 25 June 2012 Mr Adams, on behalf of Pro4Sport, transferred all, or practically all, of the assets of Pro4Sport to an associated company, Pro4Sport.co.uk Ltd (Pro4Sport.co.uk) for a deferred consideration of £47,000 plus VAT.

With the first PPF levy invoices based on the new Experian insolvency-risk assessment model starting to land on trustees’ door-mats, many schemes have made the unwelcome discovery that their PPF levy for 2015-16 has suffered a substantial hike. Around 200 schemes are reported to have seen levy rises in excess of £200,000.

Following Parliamentary approval in March 2015, this Implementation Timetable sets out the key dates and changes which have been published to date on the insolvency provisions of the Small Business, Enterprise and Employment Act. This timetable was updated in October 2015.

We will, of course, provide confirmation and updates as and when further guidance is published.

The Small Business, Enterprise and Employment Act

When will the insolvency-related provisions come into force?

Legal changes affecting construction businesses from 1 October 2015

1 October 2015 ushers in a number of legal changes which affect construction businesses operating in the UK. We have provided brief highlights of some of the changes below. If you need further information, please contact us using the details on the right.

Introduction

This article considers section 238 of the Insolvency Act 1986 ('IA 1986') within the context of what the courts consider to be a ‘transaction’ when applying for a declaration to do with antecedent transactions. Whilst this article is limited to the consideration of section 238, similar factors apply to applications made further to sections 339 and 423 IA 1986.

The recent further dip in oil price has placed even more pressure on the costs paid by Operators to Contractors, and also how much reliance Contractors can place on an Operator's promise to pay.