Restructuring Plans (RPs)
2024 was a year of firsts for RPs, and as case law in this area continues to evolve, there is little doubt that this will carry through into 2025.
It would be remiss not to expect to see more RPs in 2025. News of Thames Water's restructuring is "splashed" all over the press and Speciality Steel's plan might see the first "cram up" of creditors, but there seems a long way to go to get creditors onside.
The below sets out key considerations when dealing with an extension of an administration at the end of the first-year anniversary.
Categorisation of a charge as fixed or floating will have a significant impact on how assets are dealt with on insolvency and creditor outcomes.
Typical fixed charge assets include land, property, shares, plant and machinery, intellectual property such as copyrights, patents and trademarks and goodwill.
Typical floating charge assets include stock and inventory, trade debtors, cash and currency, movable plant and machinery (such as vehicles), and raw materials and other consumable items used by the business.
Following our previous alert, in which we highlighted an issue with entries relating to registered security maintained at Companies House being incorrectly updated to indicate that they had in fact been discharged without the aware
Over the past week, reports have emerged about filings that have been made at Companies House marking a charge as satisfied, without the company's or relevant lender's knowledge.
There were rumours last week, which were simply that, because Companies House had not publicly announced any issue, but, as we have seen over the weekend and is now widely reported in the news, it appears that there have been at least 800 erroneous filings.
Monitoring Winding up Petitions
While not an everyday occurrence, a company being issued with a winding up petition is an eventuality that all providers of finance, whether on a secured or unsecured basis, will prepare for.
From a contractual perspective, facility agreements will include specific monitoring information covenants as part of the core relationship housekeeping, supported by a hard backstop of event of default triggers, with rights for debt acceleration, and (if applicable) security enforcement operating in tandem from that point.
This guide should not be relied on as a definitive guide to the legislation and should not be relied on as legal advice. The particular circumstances of any situation will need to be considered to determine if the overseas entity is one that is captured by the legislation, if the estate is a qualifying estate, and whether the beneficial owners need to be registered. As a result, this guide is intended only as a high-level overview.
This guide covers the position of property and land situated in England and Wales only.
On 11th November 2022, Mr Justice Zacaroli handed down judgment on an application for directions made by the officeholders of ten different energy supply companies (“ESC” or “ESCs”) seeking clarification on issues arising in the insolvencies of the ESCs which had not previously been the subject of judicial consideration.
In terms of quantum, the issues were valued at in excess of a hundred million pounds across the ten insolvencies and potentially many more millions of pounds on other ESC insolvencies not before the court.
在经济下行的时候,原来一些质地不错的企业也会陷入困境。对于困境企业而言,通过破产重整焕发生机,也许是最后一根救命稻草;对于投资人而言,未来真正的赚钱机会,也将出现在更多、更复杂的破产重整项目中。今天,我想跟大家谈谈破产重整投资的趋势、挑战与未来。
一、重整投资的趋势
首先,我们来谈谈重整投资已经展现出的四个变化趋势。
第一个趋势,是从被动投资到主动投资。
什么是被动投资?以往一些破产项目中的重整投资人,往往本身就是破产企业的债权人,他们随着陷入危机的破产企业一起被困在了“水中”,不得不通过参与重整投资寻求最后的“上岸”机会,比较典型的就是一些作为困境企业债权人的AMC公司。
什么是主动投资?这几年里,逐渐有一些“岸上的人”也瞄准了重整投资领域。“岸上的人”,是与困境企业没有关系的外部投资人,他们没有受到困境企业的牵连,而是将重整投资视作一个宝贵的商业机会,主动参与其中。这样的“岸上投资人”,既包括产业投资人,也包括财务投资人。
On 5 April 2022, the UK government published the first review of the Insolvency (England and Wales) Rules 2016 (the Rules) (the Report). It is evident from the Report that many respondents took the opportunity to raise issues faced in practice, not just with the Rules, but with the operation of the insolvency legislation in general.