For the first time in New Zealand, the High Court has considered whether a compromise under Part 14 of the Companies Act 1993 can release guarantors of a company's debts.  Silverfern proposed a Part 14 compromise to its creditors and, as part of that compromise, the guarantees given by Silverfern's directors and shareholders, Mr and Mrs O'Connor, of Silverfern's debts, would be unconditionally released.  The compromise was approved by the required majority but opposed by the plaintiffs. 

In Havenleigh Global Services Ltd and FM Custodians Ltd v Henderson, relating to the bankruptcy of David Henderson, the Official Assignee had issued a notice under section 171 of the Insolvency Act to Xero for the provision of company records.  Associate Judge Osborne prohibited publication of a ruling about the lawfulness of the notice pending the public examination of Mr Henderson and judgment.  The Official Assignee applied for directions allowing publication because the prohibition prevented Xero from commenting on media articles about how it responded to the not

The Jackson reforms to no-win no-fee agreements and the UK government's proposal to ban general damages for minor personal injuries have sent many UK firms into a tailspin.

The English High Court in Powertrain Ltd, Re [2015] EWHC B26 considered the issue of whether a liquidator should be authorised to effect further distributions in favour of a company's known creditors without regard to possible further claims that could emerge against the company. 

The Court noted that there is a balance to be struck between the desirability of distributing assets to known creditors sooner rather than later and the potential injustice of leaving someone who has a valid claim with no effective remedy.

In the recent case of Queensland Mining Corporation Ltd v Butmall Pty Ltd (in liq), the Court held that the liquidators' relationship with a major creditor of the company in liquidation (Butmall) did not per se amount to a conflict of interest. 

Butmall applied to have its liquidators removed as they were the auditors of its major creditor (QMC), against whom Butmall purported to have considerable counterclaims.

In March 2013, four portable gas turbines worth about AU$50m had been leased to Forge Group Power Pty Ltd (Forge) by GE International Inc (GE) as lessor.  In February 2014 and March 2014 Forge was placed in administration and liquidation respectively.

The sole role of ICS, the company at issue in the recent decision of the New South Wales Supreme Court in In the matter of Independent Contractor Services (Aust) Pty Ltd (in liquidation) (No 2) [2016] NSWSC 106, was to be the trustee of the similarly named ICS Trust.  Previous litigation had confirmed that the trust was not a sham and that all ICS's assets were trust assets.  In the present decision, the judge held that all expenses incurred by ICS were expenses incurred as trustee, and therefore ICS (and the liquidator) had a right to be indemnified for those e

Changes may be coming to the Bankruptcy Code’s safe harbor provisions.[1] In 2012 the American Bankruptcy Institute established a Commission to Study the Reform of Chapter 11 (the “ABI Commission”), composed of many well-respected restructuring practitioners, including two of the original drafters of the Bankruptcy Code, whose advice holds great weight in the restructuring community.

The outcome of the TOUSA appeal has been much anticipated and closely watched by the lending community, their counsel and advisors, and legal scholars. On May 15, 2012, the Eleventh Circuit Court of Appeals issued its opinion (found here), reversing the District Court for the Southern District of Florida and affirming the Bankruptcy Court for the Southern District of Florida, at least insofar as to the bankruptcy court’s factual findings, but not remedies.

In Lehman Brothers Special Financing, Inc. v. Ballyrock ABS CDO 2007-1 Limited (In re Lehman Brothers Holdings, Inc.), Adv. P. No. 09-01032 (JMP) (Bankr. S.D.N.Y. May 12, 2011) [hereinafter “Ballyrock”], the United States Bankruptcy Court for the Southern District of New York held that a contractual provision that subordinates the priority of a termination payment owing under a credit default swap (CDS) to a debtor in bankruptcy, and which caps the amount of the termination payment, may be an unenforceable ipso facto clause under section 541(c)(1)(B).