1. State of the Restructuring Market

1.1 Market Trends and Changes

State of the Restructuring and Insolvency Market

There were 27,359 insolvencies in France as of the end of September 2021, down 25.1% from the same period in 2020, and down 47.9% from September 2019. Such reduction is relatively stable across all sectors, including those most severely affected by the health-related restrictions, such as accommodation and food services (down 44.2% year-on-year) and trade (down 28.1% year on year).

Fewer Insolvencies for More Opportunities

At the end of 2021, corporate bankruptcies (for most company sizes and in most sectors) were at their lowest level compared to the pre-COVID-19 figures from 2019, with a 50% drop in insolvency proceedings and a 10% decrease in pre-insolvency situations. This was largely due to the temporary impact of government emergency measures and support, including:

Un accionista solicitó del juzgado mercantil que se acordara la disolución judicial de la compañía en la que participaba (y que se nombrara liquidador a quien ostentaba la condición de administrador) por haberse producido la paralización de los órganos sociales (art. 363.1.d Ley de Sociedades de Capital [LSC]). En el procedimiento no se discutió la realidad de esta paralización, pero se alegó —para oponerse a lo solicitado— que se había incumplido el requisito de la previa convocatoria de junta general extraordinaria.

Se presentó a inscripción en el Registro Mercantil escritura pública de fusión en la que la sociedad absorbente estaba íntegramente participada por la sociedad absorbida (que se encontraba en liquidación). Los acuerdos de fusión fueron adoptados por el socio único de la sociedad absorbente (esto es, por la sociedad absorbida, representada por el liquidador). La registradora denegó la inscripción argumentando, entre otras cosas, que resultaba preciso también el acuerdo de la junta general de la sociedad absorbida.

This week’s TGIF takes a look at the recent case of Mills Oakley (a partnership) v Asset HQ Australia Pty Ltd [2019] VSC 98, where the Supreme Court of Victoria found the statutory presumption of insolvency did not arise as there had not been effective service of a statutory demand due to a typographical error in the postal address.

What happened?

This week’s TGIF examines a decision of the Victorian Supreme Court which found that several proofs had been wrongly admitted or rejected, and had correct decisions been made, the company would not have been put into liquidation.

BACKGROUND

En su Sentencia de 1 de marzo de 2019 [RJ 2019/622] el Tribunal Supremo ha venido a interpretar la excepción a la subordinación de los créditos de las personas especialmente relacionadas con el concursado que se contiene en el artículo 92.5º de la Ley Concursal (LC).

This week’s TGIF considers Re Broens Pty Limited (in liq) [2018] NSWSC 1747, in which a liquidator was held to be justified in making distributions to creditors in spite of several claims by employees for long service leave entitlements.

What happened?

On 19 December 2016, voluntary administrators were appointed to Broens Pty Limited (the Company). The Company supplied machinery & services to manufacturers in aerospace, rail, defence and mining industries.

Las Sentencias del Tribunal Supremo de 10 de julio y 31 de octubre de 2018 [RJ 2018/2814 y RJ 2018/4729] han debido decidir si una sociedad (TIP) ostentaba el control sobre otra (TRECAM) a los efectos de determinar si esta segunda pertenecía al grupo de la socia única (CAM) de la primera (lo que resultaba relevante para la calificación en el concurso de TRECAM de los créditos de CAM y de otra filial íntegramente participada de esta ultima entidad).

This week’s TGIF considers the recent case of Vanguard v Modena [2018] FCA 1461, where the Court ordered a non-party director to pay indemnity costs due to his conduct in opposing winding-up proceedings against his company.

Background

Vanguard served a statutory demand on Modena on 27 September 2017 seeking payment of outstanding “commitment fees” totalling $138,000 which Modena was obliged, but had failed, to repay.