Despite numerous obstacles and challenges faced along the way following Brexit (and its inevitable impact on tracing and recovering assets of UK based debtors overseas), we last left our brave cross-border recovery specialists triumphantly holding the hard-won exequatur judgment which expressly recognised the bankruptcy order and Trustee in Bankruptcy (TIB) and confirmed that all rights and powers were enforceable in France. Vive La France!
The Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024 ("the 2024 Act") introduces some changes to the statutory insolvency regime in Ireland. The relevant provisions of the 2024 Act came into effect earlier this month on 1 July 2024.
Restructuring Corporate Groups: Transferring Employees under a Scheme
Intersnack Mid Co Pty Ltd(No. 2) [2024] NSWSC 9 ("Intersnack")
Restructuring or consolidating corporate groups may involve a new or different company in the group employing staff. In such a case an order can be made under s 413, Corporations Act ("CA") giving effect to that arrangement including where the staff are employed under an enterprise agreement.
1. Introducción
Este mes son prominentes los autos de homologación de planes de restructuración (en su mayoría no consensuales) que seguimos viendo. En ese mismo campo destacamos la desestimación de la impugnación del ya famoso plan de Torrejón Salud (plan con una única clase) que se ha instaurado como un "leading case" en la práctica. Los recurrentes son condenados en costas.
Todo esto y más resúmenes de resoluciones que nos han parecido interesantes a continuación.
2. Audiencias Provinciales
The High Court has confirmed in the recent case of Hyde and another v Djurberg and others ([2024] EWHC 1188 (Ch)) that it won't tolerate the concealment of after-acquired property from trustees in bankruptcy, even when the property is the subject of a settlement agreement and paid onto various third parties. The judgment highlights the importance of monitoring a bankrupt's affairs as a trustee, acting quickly to preserve assets and serving a notice pursuant to section 307 of the Insolvency Act 1986 (Act) if there's a potential claim for after-acquired property.
The High Court has handed down judgment against two former directors of a number of BHS group companies. The Joint Liquidators, Anthony Wright and Geoffrey Rowley (both of FRP Advisory) brought claims against Lennart Henningson and Dominic Chandler for wrongful trading, misfeasance trading and individual misfeasance.
Wrongful trading
Special Purpose Vehicles ("SPVs") – Financing Arrangements
Canstruct Pty Limited v Project Sea Dragon Pty Limited (No. 4) [2024] FCA 112 ("Canstruct")
SPVs are typically incorporated to undertake particular projects either for their holding company or on behalf of joint venturers. The arrangements made to fund the operations of SPVs can have implications for both their directors and their shareholders.
1. Introducción
Siguen siendo llamativas las homologaciones de planes de restructuración con apoyo de una ínfima mayoría del pasivo afectado. Este mes destacamos la homologación de un plan de restructuración para una microempresa aprobado por tan solo el 2,5% del pasivo con extensión de efectos al 97,5% restante.
Esta y otras resoluciones se resumen a continuación.
2. Tribunal Supremo
Due Diligence by Voluntary Administrators in respect of their Appointment
Robust Construction Services Pty Ltd [2023] NSWSC 1156 ("Robust")
In its recent judgement of Foo Kian Beng v OP3 International Pte. Ltd. [2024] SGCA 10, the Singapore Court of Appeal laid down some key principles regarding the scope of directors' duties to creditors, i.e. the "creditor duty". These principles serve as useful guidance not just for directors to understand how they should discharge their duties but also for creditors seeking to hold directors to account. We set out some practical guidance for creditors on ensuring that directors discharge the "creditor duty".
What does the "creditor duty" of directors encompass?