At a time when insolvency practitioner’s (“IPs”) fees are being scrutinised more closely than ever, the case of Bell v Birchall and others [2015] is a timely reminder to IPs to consider the necessity of the work they propose to undertake, particularly in respect of assets that do not form part of the insolvent estate. In this case, the court ruled that it had no jurisdiction to make a “Berkeley Applegate” order.

“The question that he frames in all but words

Is what to make of a diminished thing.”

                             Robert Frost, “The Oven Bird”

In a significant expansion of the potential risk for distressed claims traders, the Delaware bankruptcy court has recently ruled¹ that traders who engage in insider trading may have their claims subordinated to equity, and that traders who amass claims sufficient to block a plan of reorganization owe fiduciary duties to all other creditors and shareholders during plan negotiations.