Following its decision in July to consider restructuring options in light of its mounting debts, the popular restaurant chain Pizza Hut has reached an agreement with its creditors by way of a company voluntary arrangement (CVA) that will see 215 of its 244 restaurants (88%) continue trading, as well as retaining around 5,000 of its 5,450 employees (92%).

Where the law to mitigate the consequences of the COVID-19 pandemic in civil, insolvency and criminal proceedings (COVInsAG) is concerned, the German Parliament has introduced rules regarding the suspension of a managing director’s obligation to file for insolvency. It has also issued important statements regarding the liability of managing directors and the legal position of new loans, especially shareholder loans.

In the event that the obligation to file for insolvency is suspended:

Re System Building Services Group Limited [2020] EWHC 54 (Ch)

Summary

A recent High Court ruling has considered the character and extent of directors’ duties in the context of insolvency.

In System Building Services, Insolvency and Companies Court Judge Barber (“ICCJ Barber”) considered, amongst other things, the nature of a director’s duties to a company and whether those duties survive the company’s entry into an insolvency process.