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Key points

  • Failure to comply with sections 333 and 363 of the Insolvency Act constitutes contempt of court for which a committal order may be obtained.

  • A trustee in bankruptcy should not usually require permission to apply for a committal order.

  • Correct procedure for application confirmed by the court.

Key points

  • Information obtained by compulsion can be shared between officeholders of connected estates (parent/subsidiary)

  • There must, however, be a possibility that there will be a surplus in the subsidiary estate

  • The prospect must be real as opposed to fanciful

The facts

Key points

  • Court reiterated circumstances in which it will sanction a proposed course of action by administrators

  • Requirement that the course of action be “particularly momentous”

  • Court sanctioned proposed settlement in the circumstances

The Facts

Key Points

  • Floating charge is valid even where there are no unencumbered assets at the time it is taken
  • Crystallisation of prior ranking floating charge does not impact enforceability of second ranking floating charge

The Facts

As of 1st October 2017, debt recovery and collections in both the commercial and consumer world is going to see a big change with the introduction of the debt recovery Pre-Action Protocol (‘PAP’).

There has been a previous pre-action protocol, introduced in 2014, which was in many ways accepted as a sensible approach to collection of all debts.

Key Points 

  • Directors cannot file a notice of intention to appoint (NoI) without a ‘settled intention’ to appoint an administrator
  • NoIs cannot be used where there is no qualifying floating charge holder (QFCH)
  • The judgment has implications for validity of appointments where requirements not met

The Facts

Today, thanks to the high-cost of current court fees, small to medium-sized enterprises (SMEs) face the problem of not getting paid by a customer and then, subsequently, not being able to go to court to get paid.

Key Points 

  • Claims against Kaupthing could not be pursued in the English courts
  • No implied restriction on jurisdictional effect under the Winding-up Directive
  • Position analogous to Judgments Regulation and Insolvency Regulation

The Facts