German legislator finally introduces tax exemption for income resulting from debt waivers in restructuring scenarios with retroactive effect.

Following the liquidation of BHS Ltd, the High Court was asked to consider whether a landlord could claim full rent as an administration expense following termination of the CVA.

Background

Wright and another (Liquidators of SHB Realisations Ltd) v The Prudential Assurance Company Ltd concerned three principal insolvency processes applicable to companies under the Insolvency Act 1986:

To date, a debt waiver has been frequently used as a tool to successfully restructure German-based companies in financial difficulties.