As most global markets attempt a return to normal (or a new form of normal) business, it is hard to imagine a sector or an industry that isn’t already reeling from the effects of the past three months. Getting back on your feet is hard enough in the current environment, without having to worry about further setbacks impacting your business. But how would you react if your key supplier called tomorrow to let you know that they were insolvent and unable to provide you with goods or services?
Although the challenges brought by the COVID-19 pandemic have, and continue to, put exceptional pressure on supply chains, the reality is that the insolvency of a business partner is a risk even in normal times. When that business partner is on the other side of pending arbitration proceedings, questions arise as to how the insolvency affects the substantive claim as well as the underlying procedure.
For some time we have been following with interest the case of Bresco Electrical Services Ltd (in liquidation) v Michael J Lonsdale (Electrical) Ltd as it progresses through the courts. Why? Because this concerns an important question which comes up time and time again: are the regimes of construction adjudication and insolvency set off compatible?
Hogan Lovells Publications | 15 June 2020
Navigating distress and insolvency in the oil and gas industry
Following the success of our three-part webinar series produced together with Houlihan Lokey in Spring 2020, we have developed reports summarizing how companies and investors can better navigate distress and insolvency in the oil and gas industry.
RE: A COMPANY (INJUNCTION TO RESTRAIN PRESENTATION OF PETITION)
Die Corona-Krise zeigt bereits nach wenigen Monaten erhebliche Auswirkungen auf die finanzielle Lage vieler Unternehmen. Während sich die Bundesregierung bemüht, Hilfspakete auf den Weg zu bringen und Kurzarbeit zu fördern, sind die Folgen für viele Branchen vernichtend. Manche Unternehmen werden auf lange Sicht eine Insolvenz nicht abwenden können. Eine bevorstehende Insolvenz zeichnet sich oft dadurch ab, dass der Arbeitgeber nicht mehr in der Lage ist, seine Arbeitnehmer zu bezahlen.
Was passiert mit ausstehenden Löhnen?
Part II: Customer Considerations: Risk Mitigation = Smarter Sales
In the coming months, very few companies, whether public or private, will be able to avoid including statements in their quarterly reports or financials that attribute single or double digit percentage declines in revenue to doubtful accounts and insolvencies of major customers caused by the pandemic. For many, if not most, that disclosure will continue beyond Q4 of 2020 and through 2021.
Hogan Lovells Publications | 03 June 2020
A creditor's game plan in Chapter 11: Five things to consider
Hogan Lovells Publications | 29 May 2020
Implications of COVID-19 on the Australian Mining Industry
This brief article considers the currently active restructuring markets in Asia and provides examples of where insolvency procedures from outside of Asia come to the rescue or, depending on your side of the table, torment, those trying to implement an orderly restructuring.
Introduction