In Re JT Frith Limited [2012] EWHC 196 (Ch):
- the terms of an intercreditor agreement; and
- some unwitting help from the junior creditors,
enabled a senior secured lender to benefit indirectly from the prescribed part on the insolvency of its debtor.
Existing law at a glance
The Enterprise Act 2002 introduced the prescribed part under a new section 176A(2) of the Insolvency Act 1986. It reserves part of the floating charge recoveries for unsecured creditors.
Since then, the courts have held that:
United Kingdom, Insolvency & Restructuring, Litigation, Dentons, Debtor, Unsecured creditor, Insolvency Act 1986 (UK), Enterprise Act 2002 (UK)
KEY POINTS
Introduction
On June 23, 2011, after fifteen years of hugely acrimonious litigation, the Supreme Court of the United States (the “Court”) issued a decision on a narrow legal issue that may end up significantly limiting the scope of bankruptcy courts’ core jurisdiction.
USA, Insolvency & Restructuring, Litigation, Paul, Weiss, Rifkind, Wharton & Garrison LLP, Punitive damages, Bankruptcy, Tortious interference, Defamation, Constitutionality, US Congress, Article III US Constitution, Supreme Court of the United States, Ninth Circuit, US District Court for Central District of California, United States bankruptcy court
Introduction
USA, Environment & Climate Change, Insolvency & Restructuring, Paul, Weiss, Rifkind, Wharton & Garrison LLP, Contamination, Pollution, Bankruptcy, Debtor, Injunction, Breach of contract, Liability (financial accounting), Bankruptcy discharge, Supreme Court of the United States, Third Circuit, Sixth Circuit