In the recent case of Gillan v HEC Enterprises Ltd (in administration) and Ors [2016] EWHC 3179 (Ch), the High Court considered (1) in what circumstances administrators can recover costs and expenses incurred in dealing with trust property and (2) how the administrators’ costs in applying for a Berkeley Applegate order and other litigation were to be dealt with.

Background

The English Court has agreed to lift the automatic stay on proceedings under the Cross Border Insolvency Regulations 2006 (“CBIR”) against STX Offshore & Shipbuilding Co Ltd (“STX”) which had entered into rehabilitation proceedings in Korea.

Facts

Over the past few months, we have commented on the steel industry crisis and some of the employment law issues arising from it in the context of insolvency.

The Employment Tribunal ruled last month that the former employees of Sahaviriya Steel Industries UK Limited (in liquidation) are entitled to the maximum protective award for a complete failure by SSI to inform and consult them about their redundancies (90 days’ pay for each of the 1100 employees affected).

The Employment Tribunal ruled last month that ex-employees of Sahaviriya Steel Industries UK Limited (in liquidation) (“SSI”) are entitled to the maximum protective award for a complete failure by SSI to inform and consult with them about their redundancies (90 days’ pay for each of the 1100 employees affected).

Recent posts on eSQUIRE Global Crossings have highlighted the problems in the oil and gas sector and unfortunately this is not the only sector under pressure.

Job losses and insolvency in the steel industry

Overview

This article considers the state of the care homes industry, certain issues that arise when dealing with the imminent insolvency of care homes and initial considerations about what to take into account when determining sales strategy.

General concerns

This case considered whether Bulmers Transport Limited (“Bulmers”) was under the “supervision of an insolvency practitioner” pursuant to Regulation 8(7) Transfer of Undertakings (Protection of Employment) Regulations 2006 (“TUPE”).

Comment

The case provides some helpful clarity on the inter-relationship of Regulation 8(7) TUPE and s388 Insolvency Act 1986, when determining whether a company is under the “supervision of an insolvency practitioner”.