The Department for Business, Energy and Industrial Strategy published the Corporate Insolvency and Governance Bill yesterday (20 May 2020). The Bill, when enacted, represents the most significant amendment to the UK’s insolvency laws since the Enterprise Act 2002 introduced the administration regime.
We know that landlords have been waiting to find out how they can legitimately pursue arrears from their tenants. It’s been a long wait for the publication of the Corporate Insolvency and Governance Bill.
Insofar as commercial property rent claims are concerned, the crucial points are:
Zenrock Commodities Trading Pte Ltd is one of the latest additions to the increasing list of commodities traders in Singapore making recent headlines, with financial difficulties and malpractice allegations coming to light. The COVID-19 crisis, oil price volatility and slumping demand are acting as a catalyst, and are affecting a majority of oil majors and traders in Singapore and the region.
J.C. Penney filed chapter 11 the evening of Friday, May 15, 2020. Hearings on the case were commenced on the next day - a Saturday. Several lawyers on the call suggested to the court that it was the first time they had ever appeared on a weekend. Hundreds of people participated in the hearing. And, in fact, one of the participants was an individual small shareholder of the company.
Where was this hearing? The answer is everywhere and nowhere at the same time. Each participant appeared remotely. Exhibits were posted for everyone to review online at join.me.
Potentially casting retail landlords against their debtor-tenants, a bankruptcy judge in the Eastern District of Virginia--an increasingly popular destination for major retail bankruptcy filings--allowed Pier 1 and its affiliates to effectively "shelter in place" while the majority of its stores remain closed across the country.
The news of major retailers, gyms and others filing or expecting to file for bankruptcy protection is yet another unfortunate reality of the COVID-19 pandemic crisis. A corporate bankruptcy can lead to a host of insurance-related issues, including claims made against directors and officers, competition for finite insurance limits, and disputes over who has rights or priority to, and can access, insurance policy proceeds.
Our February 26 post entitled “SBRA Springs to Life”[1] reported on the first case known to me that dealt with the issue whether a debtor in a pending Chapter 11 case should be permitted to amend its petition to designate it as a case under Subchapter V,[2] the new subchapter of Chapter 11 adopted by
Courts reviewing a bankruptcy court’s decision to approve a chapter 11 reorganization plan over the objections of an interested party must consider not only the merits, but also (if implementation of the plan was not stayed) potential injury to the reliance interests of other parties relying on the plan. These issues are confronted in Drivetrain, LLC v. Kozel (In re Abengoa Bioenergy Biomass of Kansas), 2020 WL 2121449 (10th Cir.
In the light of increased volatility across many markets and disruptions to economic activity, parties to transactions that are subject to ISDA Master Agreements1 will need to think about what strategies they would adopt if an Event of Default occurs with respect to their counterparties.
Choices
This note sets out the circumstances in which a creditor may successfully lift a statutory moratorium against a company in administration in England and Wales, and in Singapore.
English law