The New Bankruptcy Law (Federal Law Decree No 51 of 2023) came into effect in UAE on 1 May 2024, replacing the previous law (Federal Decree-Law No 9 of 2016). While maintaining much of the old law's structure, it introduces significant changes for creditors and debtors, including the recognition of both natural and legal persons as 'debtors'. The law retains emergency financial crisis provisions from the old law and is expected to impact restructuring and insolvency cases in the UAE.
Introduction
DoCA's: What Claims can be Released?
PK Riddell Investments Pty Ltd v Upwards Up And Gone Pty Ltd [2024] VSC 159 ("Riddell Investments")
The UK Jurisdiction Taskforce (UKJT) has published its "Legal Statement on Digital Assets and English Insolvency Law." The Statement confirms the view that digital assets are a form of personal property to which insolvency laws apply. It also affirms that the current approach taken by the English courts to determine whether they are the appropriate venue for the commencement of insolvency proceedings works for a company dealing in digital assets.
1. Introducción
En la edición de este mes de abril destacamos la ya famosa sentencia de la Audiencia Provincial de Valencia del 27 de marzo que declara la ineficacia total del plan de restructuración de Das Photonic, S.L.
Sobre esta sentencia se ha hablado mucho porque es la primera declaración de ineficacia de un plan de restructuración.
La sentencia tiene casi 150 páginas pero reseñamos abajo los puntos clave de su contenido que hemos extractado porque creemos pueden servir de lección para casos futuros.
Communicating with Scheme Creditors: Beware of Zealous Advocacy
A-Cap Energy Limited [2023] FCA 1356 ("A-Cap") and Symbio Holdings Limited [2024] FCA 40 ("Symbio")
The main communication with scheme creditors is the explanatory statement approved at the first court hearing.
However, there can be other communications which are proposed to be sent to creditors.
In the case of other communications which are known at the time of the first hearing, they can include:
1. Introducción
En la edición de este mes de marzo destacamos:
La Sentencia de la Audiencia Provincial de Barcelona de 20 de diciembre de 2023 que considera irrescindible la hipoteca constituida por la concursada a favor de la AEAT incluso cuando lo que se garantiza es la deuda de un tercero, y no la propia.
This Quickguide outlines some practical considerations for companies whose contractual counterparties are experiencing financial distress, including what questions may be asked of the counterparty in relation to its distress and how to negotiate payment terms or recover debts.
1. Overview
DoCA’s: Discriminating between Creditors -Is it for a Proper Purpose
Canstruct Pty Limited v Project Sea Dragon Pty Limited (No. 4) [2024] FCA 112 ("Canstruct")
In the first restructuring plan since the Court of Appeal's landmark decision in Adler, the High Court has handed down an extraordinary judgment sanctioning McDermott's heavily contested Part 26A restructuring plan and berating the conduct of its opposing creditor. Despite this, the opposing creditor ended up with the financial compromise they asked for – not through the plan but, in part at least, because of events occurring in the parallel Dutch WHOA proceedings. This should give UK lawyers some pause for thought.
Introducción
En la edición de este mes de febrero destacamos dos interesantes sentencias de la Audiencia Provincial de Valencia: