This client alert summarises the recent announcement by the UK government concerning reforms to UK insolvency law to help struggling businesses, being:
As COVID-19 continues to cause widespread economic disruption, the UK government has announced lending measures to support struggling businesses. This alert summarises:
- the measures available;
- key legal considerations for directors hoping to take advantage of new debt; and
- practical steps directors can take to protect themselves from personal liability.
This alert is relevant to directors of disrupted, stressed, and distressed companies who are considering additional borrowing.
What has the government announced?
Summary
Case:Pantiles Investments Ltd & Anor v Winckler [2019] EWHC 1298 (Ch)(23 May 2019)
The High Court decision in Burnden Holdings clarifies the law on retrospective attacks on the declaration of dividends.
SUMMARY
Summary
SUMMARY
The Court of Appeal of England and Wales (“CA”) made a significant ruling on two matters affecting the powers and duties of directors of English companies.
Summary
English law restructuring and insolvency tools are used to implement financial restructurings and the external administration of foreign companies. The attractiveness of the English tools and legal system is highlighted by the prevalence of companies incorporated abroad, especially companies incorporated in the EU, which avail themselves of those tools. English law in this area is impacted by much European law.
English Law Challenges to EU Bank Restructurings Firmly Closed off by U.K. Supreme Court
Summary – Decision of U.K. Supreme Court
(Bankr. S.D. Ind. Dec. 4, 2017)
The bankruptcy court grants the motion to dismiss, finding the defendant’s security interest in the debtor’s assets, including its inventory, has priority over the plaintiff’s reclamation rights. The plaintiff sold goods to the debtor up to the petition date and sought either return of the goods delivered within the reclamation period or recovery of the proceeds from the sale of such goods. Pursuant to 11 U.S.C. § 546(c), the Court finds the reclamation rights are subordinate and the complaint should be dismissed. Opinion below.