Congratulations to all those who lobbied government to extend the carve out for insolvency from the restrictions imposed by the Jackson Reforms. We have just received confirmation from the Ministry of Justice that the exemption granted to Insolvency Practitioners has been extended indefinitely.

A real shot in the arm for Insolvency Litigators across the UK.

House of Commons: Written Statement (HCWS303)

Ministry of Justice

The recent case of Husky Group Ltd  (“Husky”) underlines the importance of following your lawyer’s advice and not pursuing the defense of the indefensible.

The absolute priority rule of Section 1129(b) of the Bankruptcy Code is a fundamental creditor protection in a Chapter 11 bankruptcy case. In general terms, the rule provides that if a class of unsecured creditors rejects a debtor’s reorganization plan and is not paid in full, junior creditors and equity interestholders may not receive or retain any property under the plan. The rule thus implements the general state-law principle that creditors are entitled to payment before shareholders, unless creditors agree to a different result.