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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

European Leveraged Finance Alert Series: Issue 6

Legislative changes in Italy (starting from 2012) facilitated leveraged transactions facilitating security in both bank and bond financings and aligning bond and bank finance options. These changes have catalyzed creditors’ appetite for Italian leveraged finance transactions and helped fuel a resurgence in M&A activity in Italy. Here are ten (plus one) things to consider when doing a leveraged finance deal in Italy:

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

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