THE LANDLORD'S POSITION' TO CVAs v PRE-PACKS
There has been much press coverage in recent years on Tenant CVAs and the tempo on these has increased in recent weeks with the approval of CVAs for New Look, Pizza Express and Yo Sushi! amongst others.
The devastating effect of the global COVID-19 pandemic has been felt across the entire leisure and hospitality sector, but nowhere has felt the pain quite as acutely as the UK's night-time economy which, without extended Government support, may struggle to survive. With crowds the new enemy, many venues will remain closed for the foreseeable future and possibly for good.
Earlier this year, the Ontario Court of Appeal released its decision in Urbancorp Cumberland 2 GP Inc. (Re)[PDF], which clarifies the scope and effectiveness of a section 9(1) vendor’s trust under the Ontario Construction Lien Act in insolvency proceedings.
WELCOME TO OUR LATEST EDITION OF OUR TRUSTEE QUARTERLY UPDATE!
LEGISLATION
CORPORATE INSOLVENCY AND GOVERNANCE ACT RECEIVES ROYAL ASSENT
The Corporate Insolvency and Governance Act 2020 received Royal Assent on 25 June 2020. As reported in our last Update, the Act brings in some major changes to the insolvency regime which are potentially relevant to scheme trustees seeking to enforce their rights against sponsoring employers, in particular:
The ongoing pandemic will cause upheaval across all markets and sectors. Business models may become unviable. Sound businesses will suffer short-term liquidity crises. Customer behaviour may alter. Distress opportunities can create opportunity if buyers can work to an accelerated timeline.
1. IT'S NOT JUST INSOLVENCY
The COVID-19 pandemic has already led to business failures and forced others into negotiations with lenders, landlords and other stakeholders. For many sectors, the crisis has reinforced or accelerated the challenges that they were already facing. Government support measures including loans, furlough and temporary legislative changes have delayed some of the usual pressure points, but as support is eased, many businesses will have to find cash from significantly reduced turnover to satisfy deferred liabilities or repay loans.
WELCOME TO OUR LATEST EDITION OF CORPORATE FINANCE NEWS. READ ON FOR UPDATES RELATING TO COVID-19; CORPORATE GOVERNANCE; EQUITY CAPITAL MARKETS; CLIMATE CHANGE AND MORE...
COVID-19: LEGAL & REGULATORY CHANGES
CORPORATE INSOLVENCY AND GOVERNANCE ACT 2020 IN FORCE
- The Corporate Governance and Insolvency Act (CGIA) came into force on 26 June 2020, with the intention of providing businesses in financial difficulty with flexibility and breathing space and additional assistance (such as the protection of supplies) in order to maximise their chances of survival.
- It contains a number of provisions which will impact on construction contracts and professional appointments, in particular on the rights of a supplier under a contract for the supply of goods and services (e.g.
On July 20, 2020, the Court of Appeal of Québec (the QCA) released its reasons in Séquestre de Media5 Corporation,[1] putting an end to a long-lasting debate on the availability of national receivers to Québec secured creditors.
Termination for insolvency: a clause for concern?
Perhaps influenced by the fall of some significant UK brands in recent years, the actions of suppliers of insolvent firms have long been on the radar of the Government, initially through the introduction of The Insolvency (Protection of Essential Supplies) Order 2015 and most recently through the consultation and consideration relating to the Corporate Insolvency and Governance Act 2020, which came into force on 26 June 2020.