This week’s TGIF considers the decision in Nikitins v EncoreFX (Australia) Pty Ltd (No 2) [2021] FCA 27, where the Federal Court found that funds paid into a holding account for the provision of foreign exchange services were held on trust and were not property of the liquidation.

Key takeaways

On 13 January 2020, the High Court sanctioned the restructuring plans proposed by three UK companies in the DeepOcean group, under Part 26A of the Companies Act 2006.

This week’s TGIF considers a recent decision of the NSW Supreme Court which determined an application to extend the time to bring voidable transaction claims, where the potential defendants were themselves insolvent, deregistered or bankrupt and the prospect of returns from the proceedings unclear.

Key takeaways

On 29 January 2020, the Insolvency Service published its quarterly insolvency statistics for October to December 2020 (Q3 2020).

The Court of Appeal judgment handed down on 9 November 2020 in the case of HH Aluminium & Building Products Ltd and another v Bell and another (Joint Trustees In Bankruptcy of Ide) [2020] EWCA Civ 1469 provides a clear warning to applicants: serve your application notice without delay, particularly if a limitation period is close to expiry.

Factual background:

In this article we will cover the notice requirements for an out of court administration appointment by a company or its directors, and look at the recent case of Re Tokenhouse VB Ltd (Formerly VAT Bridge 7 Ltd) [2020] EWHC 3171 (Ch).

The notice requirements

On 4 September 2020, the High Court sanctioned a restructuring plan of Virgin Atlantic Airways Limited (Virgin) under the new Part 26A of the Companies Act 2006, brought in by the Corporate Insolvency and Governance Act 2020 (CIGA); this is the first time the court has sanctioned a restructuring plan under the new Part 26A.

The recent High Court decision in Hellard & Anor v Registrar of Companies & Ors [2020] EWHC 1561 (Ch) (23 June 2020) serves as a useful reminder to any party seeking the restoration of a company to the Register of Companies that it is important first to consider whether such party has the requisite standing to make the application.

The first half of 2020 saw a wave of company voluntary arrangements (CVAs) as companies explored their restructuring options against the backdrop of a darkening economic outlook.

Suppliers can no longer terminate contracts, refuse to supply goods or services or amend payment terms with an insolvent customer due to its insolvency, save in limited circumstances. The new rules - brought in by the Corporate Insolvency and Governance Act 2020 (“CIGA”) - governing protection of supplies significantly restrict parties’ autonomy in relation to customer insolvency and will be a cause of concern for many suppliers.

New protection of supplies to insolvent companies