In the recent case Blue Monkey Gaming v Hudson & Others the High Court held that the responsibility of identifying and proving title to goods under retention of title clause falls solely on the seller, not the administrators dealing with an insolvency.
Background
This update focusses on Teresa Graham’s recent review on pre-pack administration published by the Government which sets out areas for improvement and provides detailed recommendations to help better the procedure.
The background
Preamble
The COMI rules prevent a foreign based company from accessing the UK insolvency regimes, unless it has a sufficient connection with the UK. However, in Christophorus 3 Limited the High Court approved the ‘flipping up’ of a specially created UK newco in a German group to enter administration.
The background
The High Court described this case as ‘an elaborate scheme for the restructuring and refinancing’ of a German group.
The Restructuring, Insolvency and Bankruptcy Group considers the English law position.
Wrongful Trading
The Restructuring, Insolvency and Bankruptcy Group considers the legal, commercial and practical issues.
Do a deal quickly!
Often it is in the interests of both buyer and seller to negotiate and complete a deal as soon as possible to preserve value in the business before goodwill is tainted with any stigma of insolvency or key employees, suppliers or customers leave the business.
Buy the business not the shares
A recent Court of Appeal decision has confirmed that the usual contractual rules, including as to remoteness of damage, apply by analogy to the assessment of compensation under a cross-undertaking in damages in a freezing order. However, there is also room for exceptions, given that there is in fact no contract: Hone and others v Abbey Forwarding Ltd and another[2014] EWCA Civ 711.
Background
The ongoing saga of the Scottish Coal Company liquidation provides the background to East Ayrshire Council v Zurich Insurance [2014] CSOH 102.
East Ayrshire Council (EAC) granted planning permission for a surface mine at Dalfad subject to restoration obligations on Scottish Coal. These obligations were secured by a restoration bond granted by Zurich Insurance. Following Scottish Coal's liquidation, it and its liquidators, were unable to carry out the restoration work.
Schroder Exempt Property Unit Trust and another v. Birmingham City Council [2014] EWHC 2207
Summary
A landlord is liable for business rates where a tenant's lease is disclaimed, even if the landlord does not take possession of the property following a disclaimer.
Background
Key Point
Two recent cases have resulted in innovative structures for restructuring the finances of groups of companies being sanctioned by the English Courts pursuant to schemes of arrangement. The trend for using such a mechanism for financial restructuring shows no signs of abating. On the contrary the innovative scope of such schemes appears to be expanding
Stemcor restructuring
The scheme
Background