Fulltext Search

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

Ruling overturns New York decision rejecting market-based approach.

Key Points:

• Court of Appeals for the Second Circuit requires courts to consider efficient market interest rate, if available, for purposes of chapter 11 “cramdown.”

• Second Circuit decision overturns lower court ruling that used “formula approach” to determine appropriate chapter 11 cramdown interest rate.

Ultra court clarifies the requirements for classifying a creditor as “unimpaired” under a plan of reorganization.

Key Points:

• Texas bankruptcy court splits from Third Circuit in finding that a creditor must receive everything it is entitled to under non-bankruptcy law in order for the creditor to be “unimpaired.”

• The decision does not require that unsecured creditors receive post-petition interest but provides that they will be “impaired” if they do not

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

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