In a judgment issued yesterday (Francis v Gross [2024] NZCA 528), the Court of Appeal unanimously overturned the controversial High Court decision in Francis v Gross [2023] NZHC 1107 and held that purchasers of partly constructed modular buildings (pods) did not have equitable liens (at all, and especially not in priority to secured creditors) over those pods.
The last 12 months have seen a steady increase in restructuring and stressed or distressed financing transactions in the European market across a range of sectors, including tech, real estate, hospitality, manufacturing and retail.
This morning, after much anticipation, the Supreme Court has released its judgment in Yan v Mainzeal Property Construction Limited (in liq) [2023] NZSC 113, largely upholding the Court of Appeal's decision, and awarding damages of $39.8m against the directors collectively, with specified limits for certain directors. The decision signals that a strong emphasis on 'creditor protection' is now embedded in New Zealand company law.
In recent years much ink has been spilled opining on the so called 'Quincecare' duty of care, and the limits of it (see links to our recent insolvency law updates covering the topic below). The judgment in Barclays Bank plc v Quincecare Ltd [1992] 4 All ER 363 was a first instance decision on Steyn J, in which he found that a bank has a duty not to execute a payment instruction given by an agent of its customer without making inquiries if the bank has reasonable grounds for believing that the agent is attempting to defraud the customer.
Adler Group S.A. (together with its subsidiaries, the “Group”) owns and manages a portfolio of multi-family residential rental properties in Germany. The Group has faced financial headwinds caused by a downturn in the German property market and a negative global macroeconomic landscape exacerbated by, amongst other things, the COVID-19 pandemic and the ongoing war in Ukraine.
As we continue to work with clients regarding the Bank of England’s statement as to its intention to apply to place Silicon Valley Bank UK Limited (SVB UK) into a bank insolvency procedure, please see below for responses to some frequently asked questions surrounding the current situation. Please note that this list covers general topics related to rapidly changing circumstances.
As 2023 gets underway, we've taken the opportunity here to look at what we saw in the European distressed market in 2022, as well as looking ahead to what we expect to see in the months to come.
The European distressed market has been quiet this year. This is a function of ongoing government support, supportive sponsors and lenders, and a huge amount of liquidity in the market. Many companies which we and our clients identified as potential restructuring candidates have managed to complete successful refinancing transactions and have avoided the restructuring negotiation table.
The UK Government has announced today that temporary measures to protect businesses in distress introduced in response to the Covid-19 pandemic through the Corporate Insolvency and Governance Act 2020 will be lifted from 1 October 2021.
New measures intended to protect small businesses as the economy reopens, particularly in the retail, hospitality and leisure sectors, are to be introduced, with effect until 31 March 2022.
AML changes for court-appointed liquidators
Important changes for court-appointed liquidators to the regulations under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (Act) will come into force on 9 July 2021. These changes provide that, for a court-appointed liquidator: