Key Point
In certain circumstances, a purchaser’s deposit may constitute an equitable lien upon the liquidation of the seller.
The Facts
An application under s112 IA 1986 was made by the joint liquidators of Alpha (Student) Nottingham Ltd to determine whether the purchasers of unbuilt flats had the benefit of equitable liens, and therefore ranked as secured creditors in the liquidation.
The New South Wales Court of Appeal has, in a decision that has surprised many practitioners, dismissed an appeal which challenged the composition of classes in the creditors’ scheme of arrangement involving Boart Longyear Limited.1
In a recent landmark decision, Re Boart Longyear Limited [2017] NSWSC 567, the New South Wales Supreme Court granted orders to convene creditor meetings for two schemes of arrangement in respect of the restructuring plan of Boart Longyear Limited.
Major law changes intended to make Singapore the region’s pre-eminent restructuring and insolvency hub have now come into effect.
On 22 May 2017, the Singapore Ministry of Finance issued a notice that sections 22 to 34, 40, 41, 43, 45, 49, 50, 53(3) and (6) and 54 (the Relevant Sections) of the Companies (Amendment) Act 2017 (the Amendment Act) would come into operation on 23 May 2017.
Key point
- A recalibration of the issues to be considered when adjudicating on COMI in individual bankruptcy.
The Facts
Since 6 April 2016 debtors apply online to be made bankrupt, rather than petitioning the court. Their application is considered by an adjudicator who, if deemed appropriate, will make the bankruptcy order.
Key Points
- A trust can be created and enforceable in respect of assets sited in a jurisdiction that does not recognise the concept of a trust
- In circumstances where the owner of a beneficial right goes into liquidation, the transfer of legal rights held by a third party to a bonafide purchaser for value is not a disposition within the meaning of s127.
The Facts
On 28 March 2017, the Australian Federal Government (Government) released draft legislation in relation to two major reforms intended to encourage turnaround, restructuring and business rescue.
The draft legislation introduces a safe harbour for directors from liability for insolvent trading, and stays the operation of ipso facto clauses where a company enters into administration or proposes a scheme of arrangement.
EXECUTIVE SUMMARY
The Singapore Government has just passed the Companies (Amendment) Bill 13/2017 (the Bill), which contains major changes to Singapore’s restructuring and insolvency laws. As planned, these changes are expected to come into effect at the latest by the second quarter of 2017,1 and will be a major shake-up to the restructuring landscape of the region.
Key Points
- Reaffirms the importance of considering whether an applicant’s position would be improved by the making a vesting order
- Useful guidance on the extent of the court’s powers when granting a vesting order.
The Facts
On 1 February 2017, the Supreme Court of Singapore and the United States Bankruptcy Court for the District of Delaware announced that they will formally implement the Guidelines for Communication and Cooperation between Courts in Cross-border Insolvency Matters ("Guidelines").