In less than a week after its bankruptcy filing, a debtor was able to obtain confirmation of its prepackaged plan of reorganization in the Bankruptcy Court for the Southern District of New York. In allowing the case to be confirmed on a compressed timeframe that was unprecedented for cases filed in the Southern District of New York, the Bankruptcy Court held that the 28-day notice period for confirmation of a chapter 11 plan could run coextensively with the period under which creditor votes on the plan were solicited prior to the commencement of the bankruptcy case.

The Facts

An administrator was appointed over a company out of court and the administration extended on a handful of occasions. The administrator was then replaced by block transfer, but the administration subsequently expired before it was concluded.

The new administrator therefore applied for a new administration order to apply retrospectively from the date of expiry of the old order.

Summary

The court was prepared to provide for immediate release of administrators from office and to wind up a company without presentation of a petition.

The Facts

Administrators applied to court for their release, the winding up of the company and their appointment as liquidators.

The company’s remaining asset was a leasehold interest with an ultimate landlord, the immediate landlord having surrendered its interest.

Summary

This is the latest case in the long running saga of attempts to make Mr Maud bankrupt.

Facts

The saga centres around a high value property complex in Spain. Mr Maud and objecting creditors contended on his appeal against a bankruptcy order made by the Registrar against him that the reason why the petitioners sought a bankruptcy order was for the ulterior motive of taking control of the property structure and that the order should be overturned.

Summary

Court of Appeal has confirmed that a bankrupt cannot be compelled to draw down pension rights for the benefit of creditors.

Facts

Following the supportive High Court decision in the case of Raithatha v Williamson [2012] EWHC 900 (Ch), the trustee in bankruptcy in this case applied for an order compelling a discharged bankrupt to draw down his pension rights for the benefit of his creditors.

The Facts

The applicants were judgment creditors of a Robert Williams (Robert). They obtained a charging order against Roberts’s beneficial interest in 75% of the shares in a company in administration and eventually became full legal owners of those shares.

I can show that a company is insolvent and that it is reasonably likely that the statutory purpose can be achieved. I can have an administration order, right? Eh, actually no.

Creditors issued applications for administration orders against two hotel-owning companies. The companies sold hotel rooms as leases, which provided for repurchase in certain circumstances.

An attempt to rely on Libyan sanctions as a reason not to pay a debt due fails.

The creditor lent money to a company, guaranteed by the debtor. There was no dispute that the debtor owed the debt, but the debtor contended that to pay it would contravene sanctions in place against Libya. He applied, albeit five months out of time, to set aside a statutory demand served on him for the debt.

At first instance, the Judge granted an extension of time in respect of the set aside application and also set aside the statutory demand, agreeing with debtor’s position.

Having launched the original version three years ago, we have refreshed our Safeguarding Your Business guide as an eBook. The guide assists clients in protecting themselves either proactively or reactively in respect of a counterparty’s insolvency with new sections on trusts and examples of how we have helped, using some of the principles raised.

The Facts

This was an appeal by liquidators to the Court of Appeal from a decision refusing to grant an order that payments made to the respondent directors totalling nearly £450,000 were preferences.

By the time of the appeal, it was accepted that the payments were made within the relevant time and with the requisite intention to prefer.