Whether insurer liable to repay purchasers’ deposits following dissolution of developer/policy interpretation
Historically, HMRC has allowed insolvency practitioners to, at an early stage following their
appointment, cancel the VAT registration of the insolvent business. Practitioners have then been
entitled to account for VAT on any subsequent supplies using HMRC’s form VAT 833 (Statement of
Value Added Tax on goods sold in satisfaction of a debt).
In Bailey & Others (Joint Liquidators of D&D Wines International Limited) v Angove’s Pty Limited1, the Court of Appeal overturned a decision of the High Court, and so permitted the liquidator of an insolvent agent to recover funds due to it from end-customers despite the agency having been terminated.
Background
A Florida-based import-export company has filed for Chapter 7 protection in bankruptcy court, listing more than $204 million in liabilities from litigation over its role in the import from China of powdered milk contaminated with melamine. In re Exim Brickell, LLC, No. 13-28502 (U.S. Bankruptcy Ct., S.D. Fla., filed August 3, 2013). Exim Brickell, LLC declared $300 in office furniture as its only asset.
A federal court in West Virginia has ruled that the U.S. government may proceed with a Clean Air Act (CAA) and Resource Conservation and Recovery Act (RCRA) enforcement action, even though defendant and its subsidiaries have filed for bankruptcy. United States v. RG Steel Wheeling, LLC, No. 12-19 (N.D. W. Va. 7/9/12).
The Fifth Circuit Court of Appeals has affirmed decisions of the bankruptcy court and a federal district court that the purchaser of a bankrupt company’s assets cannot recover the costs of environmental remediation from an escrow account established as part of the purchase agreement.In re Evans Indus. Inc., No. 10-30387 (5th Cir. 6/21/11) (unpublished).
A bankruptcy court in Delaware has ruled that a debtor’s CERCLA claims are “non-core” claims that fall outside the administration of the estate in bankruptcy. NEC Holdings Corp. v. Linde LLC, No. 10-11890 (Bankr. D. Del.