In the October 2021 edition of IBA Insolvency and Restructuring International, Peter Hayden and Jonathan Moffatt explain recent decisions in the UK and the Cayman Islands on the narrowing of the rule in Prudential and its implications for shareholders and creditors considering litigation.
Introduction
On November 17, 2021, Alto Maipo SpA, a Chile-based run-of-the-river project, which uses the natural flow of a river to generate electricity without the construction of a dam, along with subsidiary Alto Maipo Delaware LLC, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 21-11507). The company reports $1 billion to $10 billion in both assets and liabilities.
On November 16, 2021, Riverbed Technology, Inc., an information technology company headquartered in San Francisco, along with various affiliates, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 21-11503). The company reports $1 billion to $10 billion in both assets and liabilities.
On November 11, 2021, Carlson Travel, Inc. of Minnetonka, MN filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of Texas (Case No. 21-90017). Carlson Travel is a business travel management company offering traveler care, travel management, consulting, and booking services.
On November 8, 2021, ORG GC Midco LLC of Houston, TX filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of Texas (Case No. 21-90015).
On October 31, 2021, PWM Property Management LLC, along with several affiliates that own premium commercial space in New York and Chicago, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 21-11445). The company reports $1 to 10 billion in assets and liabilities.
On October 26, 2021, Grupo Posadas S.A.B. de C.V., a Mexico City-based hospitality company, filed a petition under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York (Lead Case No. 21-11831). Grupo Posadas owns, leases, operates, and manages resorts, hotels, and villas in urban and coastal areas of Mexico under several owned brands.
The Cayman Islands' legislature has recently gazetted the Companies (Amendment) Bill, 2021 (the Amendment Bill), proposing the introduction of a new corporate restructuring process and the concept of a dedicated 'restructuring officer' into the Cayman Islands Companies Act (2021 Revision). Under the Amendment Bill, the filing of a petition for the appointment of a restructuring officer would trigger an automatic global moratorium on claims against the company, giving it the opportunity to seek to implement a restructuring.
On October 19, 2021, Monster Investments, Inc., a Maryland-based real estate company, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Maryland (Case No. 21-16592). The company reports $10 million in assets and $16.5 million in liabilities.
On October 14, 2021, Gulf Coast Health Care of Pensacola, FL, a healthcare company with 27 skilled nursing centers and two assisted living locations throughout Florida, Georgia and Mississippi, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 21-11336).