We here at the Global Restructuring & Insolvency Developments (GRID to our friends) have been following the tuition clawback wars for a few years – the cases in which a bankruptcy trustee sues a college to return tuition that the bankrupt parent paid for their child when the parent was otherwise stiffing other creditors.
2018-ban indult a magyar fizetésképtelenségi jog reformjával kapcsolatos munka az Igazságügyi Minisztérium irányításával. A 2019. októberében tartott 43. Jogász Vándorgyűlésen dr. Bogdán Tibor kormánybiztos, dr. Bodzási Balázs tanszékvezető (Budapesti Corvinus Egyetem), dr. Zsombolyay Péter főosztályvezető (IM) és dr. Fabók Zoltán ügyvéd (DLA Piper Hungary) fejtették ki álláspontjukat a folyamatban lévő kodifikáció egyes kérdéseivel kapcsolatban.
In brief...
The use of creditors’ schemes of arrangement is on the rise in Australia. Along the way the Australian courts have made valuable contributions to international scheme jurisprudence. In this article we look at some of these contributions and then explore how Australian law might be further developed to remain a leading jurisdiction for creditors’ schemes.
Advantages of schemes as a restructuring tool
One day, you get a notice in the mail that an important customer has filed chapter 11. Your customer recently paid $250,000 on invoices that were delinquent for several months and still owes you $500,000. The customer, a brick-and-mortar store, sent form letters to its vendors expressing optimism that the chapter 11 process will allow the store to continue to operate while it locates a buyer which will continue to operate the store.
Law 1676 of 2013 (Secured Interest Law), which came into effect in 2014, has substantially affected the legal scope of creditors’ rights in the context of insolvency proceedings (reorganization and liquidation). In particular, the law has potentially created a new type of creditor; the secured creditor, which has rights that differ from those creditors included in the creditor hierarchy in the Civil Code and the Corporate Insolvency Law.
In a world of multinational businesses, ever-changing consumer trends and political uncertainties, insolvencies and financial restructurings of a cross-border nature are a common occurrence. Officeholders therefore frequently need to consider options that allow, at the very least, recognition of their appointment in the jurisdictions where the insolvent debtor has (or had) operations, assets or other relevant connections.
This article appeared in Gulf Business on 22 June 2019
In a region where there has traditionally been an inherent stigma attached to business failure, the inevitable by-product is a decreased appetite for risk.
However, as the UAE’s economy has matured and become more global in its outlook, a more sophisticated and less risk-averse insolvency regime is required - one that can deal with volatile economic cycles and at the same time promote an entrepreneurial business environment.
The enactment of Law 1676 of 2013 (Secured Interest Law) in the context of insolvency proceedings − reorganization and liquidation − has substantially restated the legal scope of creditors’ rights in at least three aspects: (i) the existence or not of a new creditor type; (ii) the compatibility of that possible new type of creditor and the current system of creditors hierarchy, and (iii) the specific rights of that new creditor, should there be one, in creditors arrangement proceedings.
(i) Is the secured creditor a new type of creditor?
On August 23, 2019, President Donald J. Trump signed into law two bills amending the Bankruptcy Code: (i) the Family Farmer Relief Act of 2019 (“FFRA”); and (ii) the Small Business Reorganization Act of 2019 (“SBRA,” and with FFRA, the “Acts”).1 Here are summaries of the Acts and important takeaways.
DEBT LIMIT INCREASE APPLICABLE TO AGRIBUSINESSES
An important decision[1] has been handed down by the High Court of Australia which relates to the order of payment of statutorily preferred debts out of trust property held by an insolvent corporate trustee.