Although no insolvency law-specific regulatory changes have been introduced in Hungary due to COVID-19, the Hungarian Government has adopted numerous extraordinary measures that may have a profound effect on how companies deal with solvency and liquidity related problems under the new circumstances.

Firstly, although the bankruptcy procedure is to be initiated by the management of the company, the prior approval of the main body of the company (ie the shareholders) is required. Due to the curfew currently in effect, in-person shareholders’ meetings are mostly prohibited.

A court¹ has approached the interplay between the Insolvency Act 1986 and the Government's furlough scheme so as to encourage and support the rescue culture and facilitate access to the scheme by administrators. It ruled that:

On March 28, 2020^[1], the UK Government announced that it will introduce new legislation extending the UK’s existing restructuring and insolvency laws to include:

The High Court gave its ruling yesterday in the case of Discover (Northampton) Limited and others v Debenhams Retail Limited and others [2019] EWHC 2441 (Ch), rejecting four of the five grounds on which the Applicants disputed the validity of the company's Creditors Voluntary Arrangement ("CVA"), which was approved by creditors in May 2019.

Introduction The UK Government has announced that it will be introducing legislation under which the UK tax authorities1 will move up the creditor hierarchy in English insolvency proceedings2 in respect of certain taxes paid by

Introduction

In the recent case of Global Corporate Ltd v Hale , the Court of Appeal was asked to assess whether sums, described as “interim dividends”, paid to Mr. Hale (the “Respondent”) in his capacity as both a director and shareholder of Powerstation UK Limited (the “Company”), had been made in accordance with section 830 of the Companies Act 2006 (the “Act”) prior to the Company’s insolvency.

Following the EU Insolvency Regulation Nr. 2015/848 (the “Regulation”) coming into force, the Hungarian legislator has accordingly amended the Hungarian Insolvency Code (the “Code”) with effect from 28 October 2017.

Summary

As from 1 July 2017, several amendments to the Hungarian Insolvency Code will come into force which will grant some creditors a much better position in their debtors’ insolvency procedures.

Current Legislation

The High Court has formally adopted new guidelines approved by the fledgling Judicial Insolvency Network (“JIN”) designed to encourage and enhance communication between courts where parallel insolvency proceedings have been commenced in different jurisdictions (the “Guidelines”).

The Facts

The debtor borrowed significantly from leading domestic investment banks to finance a major construction project. The loan was secured by a pledge established on all of the debtor’s existing and future claims, including rental fees arising from an office building owned by the debtor.

What Happens to Pledges over Receivables when the Pledgor goes into Liquidation?