On 26 June 2020, the Corporate Insolvency and Governance Act (the “CIGA”) entered into force. We summarised the key terms of the proposed legislation in our previous client alert (link to previous alert).
The Office of the Director of Corporate Enforcement (ODCE) has recently issued welcome guidance on how the impact of COVID-19 will be considered by the ODCE when evaluating potential restriction cases in respect of directors of insolvent companies – see here.
On 3 June 2020, the Corporate Insolvency and Governance Bill was debated by the Committee of the Whole House of Commons. This follows on from the first reading in the House of Commons on 20 May 2020. This is the bill which enacts many of the measures referenced in the government's announcements earlier this year.
On 20 May 2020, the Corporate Insolvency and Governance Bill had its first reading in the House of Commons. This is the bill that enacts many of the measures referenced in the government's announcements earlier this year.
May Restructuring Activity
May 4 – OneWeb Global Ltd., which filed for Chapter 11 bankruptcy protection in the United States in March, received multiple initial letters of interest from potential purchasers. Final binding bids are due June 26, along with a deposit equal to 10% of bid value, and an auction is scheduled for July 2.
On 20 May 2020, the Corporate Insolvency and Governance Bill had its first reading in the House of Commons.This is the bill that enacts many of the measures referenced in the government's announcements earlier this year.
Australian satellite-based IoT startup Sky and Space Global Ltd. filed for Voluntary Administration in Australia, the equivalent of a Chapter 11 bankruptcy in the United States. April 13 – OneWeb Global Ltd. (OneWeb), which filed for Chapter 11 bankruptcy protection in the United States last month, announced that it secured a commitment from its largest secured creditor, SoftBank Group Corp., to provide up to $75m in debtor-in-possession (DIP) financing to fund its ongoing operations during the bankruptcy proceeding. The DIP financing proposal was approved
The Revenue Commissioners have issued some recent welcome clarifications about certain provisions of the Government's temporary wage subsidy scheme.
Application for the Subsidy Scheme – An Admission of Insolvency?
The main provisions of the subsidy scheme are set out in Section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020.
That section also contains the criteria for an employer's eligibility to avail of the subsidy scheme. One such criterion is that:
On 28 March 2020, the UK government announced it would be implementing new measures to improve the insolvency system aiming to, amongst other things, support businesses under pressure as a result of the COVID-19 outbreak and resulting restrictions.
Government support package – relaxation of insolvency rules
The German Federal Government has resolved upon a draft bill for the mitigation of the consequences of the SARS-CoV2- Virus (COVID-19) pandemic (the “Proposed Legislation”). One of the goals of the Proposed Legislation is to prevent insolvencies of companies which encounter financial difficulties as a result of the ongoing COVID-19 pandemic. The Proposed Legislation goes well beyond the earlier announcement made by the German Federal Department
Proposed Legislation to avoid COVID-19-related Insolvencies in Germany