Once a tenant becomes insolvent a landlord's recovery options become more limited but there are important steps a landlord should be taking.

1. Check the terms of any rent deposit agreement

Check the terms of the arrangement to find out how the deposit is held and when it is available for to use. In some cases, such as when a tenant has entered into a creditors' voluntary agreement, consent from the court may be required before the deposit can be used.

2. Find out the tenant's status

IR Global’s insolvency members showcase their expertise on how cryptocurrency is treated as an asset in a bankruptcy proceeding in their jurisdiction, what legal tools can be used against exchanges to recover stolen cryptocurrency and how can the filing of a Chapter 15 proceeding be used in connection with a cryptocurrency exchange that is the subject of a foreign insolvency proceeding.

IanLambert Partner / Litigation & Insolvency, Broadhurst LLC

As we continue to work with clients regarding the Bank of England’s statement as to its intention to apply to place Silicon Valley Bank UK Limited (SVB UK) into a bank insolvency procedure, please see below for responses to some frequently asked questions surrounding the current situation. Please note that this list covers general topics related to rapidly changing circumstances.

A range of issues are thrown up in a work accident claim where either the claimant or defendant becomes insolvent. Less common, but it does come up in work accident claims is the insolvency of the claimant employee either before the claim is issued, during the claim or after judgment/ settlement and some implications on certain procedures and orders such as PPO. More commonly faced issues are the insolvency of the employer as an individual or a company and often in occupational illness claims a long dissolved company.

On 22 February 2023, the English High Court sanctioned restructuring plans under Part 26A of the Companies Act 2006 (“CA 2006”) of seven English companies within the Lifeways Group – the largest provider of supported living services for adults with complex health needs, including brain injuries, physical and learning disabilities and autism, in the UK (the “Group”). Willkie’s London Business Reorganization and Restructuring team advised the Group.

Summary

Introduction:

On 5 October 2022, the Supreme Court delivered a landmark judgement in BTI 2014 LLC v Sequana SA [2022]. The decision is the first from the Supreme Court to address when, and in what circumstances, company directors owe a duty to consider the interests of the company’s creditors (‘’the creditor duty’’).

The UK High Court has considered and granted permission for a so called “credit bid” in an application by the Special Administrators of Sova Capital Ltd (in special administration) for a substantial portfolio of illiquid Russian securities. The transaction structure, involving the transfer of securities in exchange for the release of a £233m claim against the estate, is unprecedented in the UK where ‘credit bidding’ has no technical recognition.

Creditor duty

In BTI 2014 LLC v Sequana SA the Supreme Court considered the issue of the so-called ‘creditor duty’.

In the recent Cayman Islands case of Re In the Matter of E-House (China) Enterprise Holdings Limited[1], dealing with creditors' schemes of arrangement, Justice Segal gave a helpful decision that provided judicial clarity on, among other matters, the potential impact of the recent sanctions regimes in the US, UK and Europe on the scheme, and the international effectiveness of the scheme.