The PPF is going ahead with the new insolvency scoring system developed by Experian.
It is also raising its requirements for contingent asset guarantees.
D & D Wines was a leading distributor of wines, which went into administration. One of its clients was an Australian wine producer called Angove. Two of Angove’s customers, who dealt through D & D, paid the company shortly after it had gone into administration and after Angove had terminated the agency agreement. Despite this, the Court of Appeal ruled that the money belonged to the company in administration for the benefit of all its creditors and was not held on trust for Angove.
Earlier this year, the Pension Protection Fund (PPF) published its consultation on the second PPF Levy Triennium (2015/16 to 2017/18) which proposed wholesale changes to the measure of insolvency risk and significant changes in respect of contingent assets and the PPF’s treatment of asset-backed contributions.
As we await the outcome of the consultation, employers and trustees may find a summary of the proposals helpful in trying to gauge how they could impact their scheme’s PPF levy.
The PPF-specific insolvency risk model
The English Court does not have the power under the Cross Border Insolvency Regulations to grant relief in aid of insolvency proceedings in a foreign jurisdiction which it would not have the power to grant in purely domestic proceedings. So held the Companies Court of the English High Court (Morgan J) in Re Pan Ocean Co Limited [2014] EWHC 2124 (Ch).
Shantanu Majumdar, Radcliffe Chambers, Lincoln's Inn
In our “Insolvency in the fashion retail sector: the risks and opportunities” article in the Q2 edition of Global Insight, we looked at the challenges the fashion retail industry faces today and the opportunities available for both existing players and new market entrants in the context of insolvent business acquisitions. In this article we comment in more detail on these opportunities and consider some of the factors and risks to be aware of when purchasing an insolvent fashion retail business and its assets.
OPPORTUNITY ARISES OUT OF ADVERSITY
Directors of ‘can pay, won‘t pay’ award debtors face the prospect of an extended stay in England should they choose to defy a receivership order granted by the English Court in aid of enforcement.
Introduction
Key point
This case demonstrates how reservation of legal rights can be key even if the parties are seeking a commercial solution
Facts
Key Point
Subrogation operates not by assigning the benefit of the relevant third party's security but by creating new security rights in the hands of the subrogated creditor similar to those held by that third party.
Facts
Key Point
An administrator appointed under a qualifying floating charge can "adopt" an existing winding up petition for the purposes of liquidating the company where the benefit to the creditors of the insolvent estate is manifest on the facts.
Facts
The practice of energy companies in insolvency situations has long been a cause for frustration: in most cases the supplier will terminate the existing supply contract and a new - deemed - statutory contract at much higher rates will then apply.