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Key Points

  • Interpretation of EU case law on protection of pension payments on employer insolvency not “entirely free from doubt”

The Facts

The claimant (C) was a member of the T&N defined benefit pension scheme from 1971 to 1998. In 2006, the scheme entered a PPF assessment period and C calculated that his pension under the PPF would, as a result of caps and limitations on indexation, be roughly 67% less than what he had previously expected.

Key Points

  • Trustees in bankruptcy entitled to more than return of shares wrongfully transferred by bankrupt
  • Trustees also entitled to recover loss in the value of shares
  • Appropriate basis of valuation was fair value (not market value)

The Facts

Key points

  • Court does not have jurisdiction to direct detailed assessment of fees agreed by administrators on application of liquidator
  • Administrators can agree solicitors’ fees for work carried out during the administration after they cease holding office
  • The court has no inherent jurisdiction to direct a detailed assessment

The facts

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

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

The Seventh Circuit Court of Appeals recently handed down a decision with significant implications for landlords contemplating lease termination agreements with distressed tenants. Ruling on a direct appeal in the chapter 11 case In re Great Lakes Quick Lube LP, the court held that a lease termination agreement between a landlord and a financially distressed tenant can be voided as either a fraudulent conveyance or a preferential transfer in the tenant’s subsequent bankruptcy case.

The Seventh Circuit Court of Appeals recently handed down a decision with significant implications for landlords contemplating lease termination agreements with distressed tenants. Ruling on a direct appeal in the chapter 11 case In re Great Lakes Quick Lube LP, the court held that a lease termination agreement between a landlord and a financially distressed tenant can be voided as either a fraudulent conveyance or a preferential transfer in the tenant’s subsequent bankruptcy case. 

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