It’s been a difficult last few years for the licensed trade and the hospitality and leisure sector generally, both in terms of recovery from the Covid-19 pandemic and, more recently, the wider economic challenges facing the industry.

The threat of insolvency looms large and with it comes various regulatory considerations for insolvency practitioners (IPs): firstly, liquor licensing considerations that might arise post-appointment and, secondly, broader health and safety issues that can shift into sharp focus.

Premises licences

Contractor insolvency is continuing to dominate headlines with the recent announcement of the Stewart Milne Group entering administration. By August 2023 as many as 35 construction firms had gone under since June – 29 went under in July alone, six more than in July 2022.

With contractor insolvencies on the rise, we’re providing five essential tips to manage contractor insolvency in construction contracts and to avoid pitfalls. In all circumstances of insolvency, it is important to seek the right legal and commercial advice to avoid making a bad situation worse.

Background

The claimant, Alun Griffiths (Contractors) Limited, sought judgment for £3,316,487.55 to enforce an adjudicator's decision in its favour against Carmarthenshire County Council.

Lenders, investors, and mortgage servicers will have a more favorable and standardized framework for protecting their interests in distressed debt when applying for appointments of commercial receivers beginning July 1, 2023, when Connecticut’s Uniform Commercial Real Estate Receivership Act (UCRERA) becomes effective.

The current economic landscape is presenting challenges for many businesses. Our restructuring and business advisory specialists have provided a list of ten top tips if your business is facing financial distress.

The current economic landscape is presenting challenges for many businesses. Our team at Shepherd and Wedderburn is here to help you navigate those challenges.

Adaptability and resilience have never been more important as many businesses are currently facing ongoing challenges, such as:

With the lifting of the restrictions on the presentation of winding up petitions, and the likely cash flow pressures caused by price inflation, it is widely anticipated that we will see an increase in the number of companies subject to winding up proceedings. For any business dealing with a company in financial distress, a recent decision of the High Court of England and Wales serves as an important reminder that transactions which take place before the company has been wound up can be vulnerable to challenge.

Late last month, Senators Marco Rubio (R-Fla.) and Susan Collins (R-Maine) introduced Senate Bill 4321 (S-4321), titled “Continuing Small Business Recovery and Paycheck Protection Program Act” (Bankruptcy Access Bill), which, if enacted, would permit businesses in bankruptcy to qualify for Paycheck Protection Program (PPP) loans.

One Court Reverses Itself and Others Expose Eligibility Loopholes

Several recent bankruptcy court decisions reveal that a temporary restraining order prohibiting the Small Business Administration (SBA) from enforcing its rule that a debtor in bankruptcy cannot qualify for a Paycheck Protection Program (PPP) loan (the Bankruptcy Exclusion) is not necessarily a reliable predictor of ultimate success on the merits, and some courts have permitted end runs around the Bankruptcy Exclusion, empowering debtors to take advantage of those loopholes.

Recent bankruptcy court decisions in In re Hidalgo and In re Cosi Inc. indicate that courts are split on whether the U.S. Small Business Administration (SBA) and participating lenders can deny Paycheck Protection Program (PPP) loans to businesses that are debtors in a pending bankruptcy proceeding.

The SBA’s Bankruptcy Exclusion

Taggart v. Lorenzen, 587 U.S. (2019).

The U.S. Supreme Court has established an objective standard for determining whether a creditor should be held in civil contempt when the creditor attempts to collect a debt subject to a bankruptcy discharge order.

Case Background