When a company is in the so-called “twilight zone” approaching insolvency, it is well-established that the directors’ fiduciary duties require them to take into account interest of creditors (the so-called “creditor duty”).
In a recent case, the High Court has had one of its first opportunities to consider BTI v Sequana [2022] UKSC 25 (see our previous update here), in which the Supreme Court gave important guidance on the existence and scope of the duty of company directors to have regard to the interests of creditors (the so-called “creditor duty”, which arises in an insolvency scenario).
The judgement raises important questions for directors faced with substantial liabilities
This week, the Ninth Circuit addresses whether text messages can violate the Telephone Consumer Protection Act’s prohibition on “prerecorded voice” messages, and it considers whether debtors who paid statutory fees under an unconstitutionally nonuniform bankruptcy provision are entitled to a refund.
The Federal Court of Australia recently determined an application brought by the administrators of a company in voluntary administration seeking judicial guidance on how to deal with claims for costs and interests resulting from two prior arbitrations. The key issue was whether the costs and interests awarded in the previous arbitrations were admissible to proof in the administration of the company, having regard to the fact that the relevant arbitral awards were made after the appointment of administrators.
The Court made a distinction between the two arbitrations as follows:
2023 has been a remarkable year with the past several months displaying an upward trend for the Business Restructuring + Insolvency Group at Morrison Foerster. We would like to provide our friends and clients with an overview of our current matters, each of which demonstrate our track record of being a go-to firm for complex restructurings across industries and jurisdictions.
The Parliamentary Joint Committee on Corporations and Financial Services (the Committee) has delivered its report following an inquiry into the “effectiveness of Australia’s corporate insolvency laws in protecting and maximising value for the benefit of all interested parties and the economy”.
The English Court of Appeal has clarified the interpretation of two aspects of s.423 of the Insolvency Act 1986, the legislation which provides a mechanism for the avoidance of transactions which have been made for the purpose of defrauding creditors:Invest Bank PSC v Ahmad Mohammad El-Husseini [2023] EWCA Civ 555.
Two recent cases, Re Guangdong Overseas Construction Corporation [2023] HKCFI 1340 (the “GOCC Case“) and Re Trinity International Brands Limited [2023] HKCFI 1581 (the “Trinity Case“), reaffirm
Entre otras disposiciones, el RDL 5/2023 contiene una serie de medidas para la transposición de la Directiva (UE) 2019/2121 del Parlamento Europeo y del Consejo, de 27 de noviembre de 2019, en lo que atañe a las transformaciones, fusiones y escisiones transfronterizas intracomunitarias, estructurándose en cuatro títulos, que suponen una nueva regulación de las modificaciones estructurales de las sociedades mercantiles.