The Grand Court of the Cayman Islands (the Court) recently ruled in favour of Primeo Fund (in official liquidation) (Primeo) in its ongoing representative proceedings with the Additional Liquidator of Herald Fund SPC (in official liquidation) (Herald).
On 4 June 2015 the Cayman Islands Grand Court ruled in favour of Primeo Fund (Primeo), in the ongoing Representative Proceedings between Primeo and Herald Fund SPC (Herald). The Court had to construe section 37(7)(a) of the Companies Law. Although the Court's detailed reasons are still awaited, it is clear from the Court's decision that section 37(7)(a) does not apply to redeeming investors whose shares have been redeemed prior to the commencement of the liquidation.
Strike off is the procedure of removing a company from the Register of Companies (the Register) following which the company will cease to exist.
Under the Companies (Guernsey) Law, 2008 (the Companies Law), a company may be struck off in one of three situations:
- if the company is defunct;
- if the company is defaulting; or
- if the company itself applies to be voluntarily struck off.
Strike off by the Registrar of Companies
The Registrar of Companies (the Registrar) has the power pursuant to the Companies (Guernsey) Law, 2008 (the Companies Law) to strike off companies which are either defunct or defaulting.
Effective March 23, 2015, the Ohio Revised Code will contain robust provisions for the court appointment of a receiver, which will expand the statutory grounds for such appointments and expressly authorize enumerated powers for receivers designed to facilitate the receiver’s ability to liquidate assets. In many respects the revised statute codifies a number of existing practices.
It long has been the law that unpaid creditors of an insolvent debtor can complain if the debtor sells or otherwise transfers any of its assets for less than their fair value. Assume, for example, a company in financial distress sells one of its manufacturing plants to an unrelated purchaser for $15 million. If an unpaid creditor of the seller can demonstrate the fair value of the facility at the time of the sale was $20 million, the purchaser may be required to account to the seller, or its creditors, for the $5 million difference.
In a major victory for secured creditors, the United States Bankruptcy Court for the Western District of Tennessee has held that a sale of secured property must afford a secured creditor the right to credit bid for its collateral under section 363(k) of title 11 of the United States Code (Bankruptcy Code), except in extraordinary circumstances upon a showing of “cause.” The court held that even where secured party credit bidding might impact the competitive bidding process – including potentially “chilling” third party bids – this alone does not constitute sufficient cause to deny a credito
On Wednesday, the Second Circuit Court of Appeals put a nail in the coffin of the attempt by Thelen LLP’s bankruptcy trustee to claw back fees on work that the firm’s former partners took with them to their new firm, Seyfarth Shaw LLP. Here’s the opinion.
On June 9, 2014, a unanimous Supreme Court issued the latest in a series of key rulings regarding the extent of a bankruptcy court’s constitutional authority.1 Notably, while Monday’s Executive Benefitsdecision answered one important question arising out of the Court’s 2011 decision in Stern v. Marshall,2 it also left the primary question that resulted in a split in the Circuit Courts of Appeals to be decided another day.
The Aftermath of Stern v. Marshall
Would you know what to do if you learned that one of your franchisees had filed for bankruptcy? Perhaps more importantly, would you know what not to do? While each circumstance and franchise agreement is different, there is a general framework for dealing with a franchisee in bankruptcy. Here we’ll introduce some of the issues you are likely to encounter throughout the bankruptcy process.
The Automatic Stay