Key Employee Retention Plans (KERPs) and Key Employee Incentive Plans (KEIPs) often are the subject of intense interest, either because a distressed company’s management is focused on developing such programs to retain valuable talent during a time of great uncertainty within its organization or because certain creditor constituencies or parties in interest take issue with the payments a debtor intends to make under the programs.
Key Points
- Court held notice to scheme creditors (here two weeks) was not sufficient in light of complexity of scheme
- Court also highlighted deficiencies in supporting documentation
The Facts
What happens when the counterparties on both sides of a contract are debtors in separate bankruptcy cases and their estates have contrary views about whether to reject or assume a contract?
Key points
- Principles applying to exercise of liquidators’ powers are the same as those prior to legislative changes
- Views of creditors influenced by personal considerations to be disregarded
- The overriding requirement is for liquidators to exercise their professional judgment in the best interests of creditors
The facts
Key Points
- Test for personal service of bankruptcy petition same as for claim forms
- Document to be handed to debtor or contents explained and left “with or near” debtor
- Rule 7.55 can be used to remedy any irregularity in service if necessary
The Facts
As avid blog readers know, we’ve posted extensively on make whole issues, including several articles covering the ongoing make whole litigations in the chapter 11 cases of Energy Future Holdings and its affiliated debtors, which can be found here,
Key Points
- Court considers the impact of the Spanish Insolvency Act on guarantees governed by English law
- Court holds that the liability under the guarantee was not extinguished
The Facts
Key Points
- An administrator may be able appeal an order restoring a company following dissolution
- The court has jurisdiction to backdate a winding up order made following restoration to the date of dissolution
- The court must exercise its discretion to do so with extreme caution
The Facts
Client Connection Limited (“Company”) was placed into administration and Ms Sharma (“A”) was appointed as administrator. Following a pre-pack sale of the business of the Company, A moved the Company to dissolution.
Are you feeling a bit of déjà vu? We certainly are. As readers know, here at the Weil Bankruptcy Blog we’ve written extensively about make-wholes. In two previous posts, What the Future Holds for Make-Whole Claims in Bankruptcy: Examining the Energy Future Holdings EFIH First Lien Make-Whole Decision –
Key Points
- Court considers the ownership of assets situated at premises owned by the bankrupt in the context of limited relevant evidence
- Court emphasises the importance of joining the correct parties to litigation
The Facts