Another interesting summary in the Times reporting on the staggering levels of fraud committed against the UK taxpayer during the pandemic. Whilst the Insolvency Service are clearly doing their best to hold fraudsters to account through disqualification orders and similar punitive measures, it appears that we are no closer to a financial recovery of any meaningful value, or at the very least imposing real financial pain on those who took advantage of the country’s generosity in the face of the unprecedented challenges of the Covid pandemic.

Four months ago I posted this article on the impact of Omicron related restrictions and other economic headwinds on an already battered hospitality and leisure sector. Operators in these sectors have worked so hard to survive the Covid-era by cutting costs, seeking operational efficiencies, and negotiating support from stakeholders and we all hoped that Omicron was but a short-term delay in the return to normalcy.

Celebrated WWII leader, General George Patton, once said “Do not try to make circumstances fit your plans. Make plans that fit the circumstances.” Unfortunately, it’s advice that is not being fully heeded, according to the FCA’s latest thematic review on wind-down planning The FCA has concluded that “significant further work” is needed to ensure wind-down plans are credible and operable, and has urged all firms to ensure adequate procedures and resources (both financial and non-financial) are in place.

On March 14, 2022, the United States Court of Appeals for the Fifth Circuit (the “Fifth Circuit”) revisited the issue of the rejection of filed-rate contracts in bankruptcy where such contracts are governed by the Federal Energy Regulatory Commission (“FERC”). The ruling marks the first time the Fifth Circuit has addressed this issue since its 2004 decision in In re Mirant Corp.¹ In Federal Energy Regulatory Commission v.

It is almost inevitable that despite the ongoing hard work by the FCA to protect customers against ruthless and reckless “investment advisors”, the number of financial scams will continue to rise over the next couple of years.

For a company with robust data protection and recovery practices, a ransomware attack may cause a few extra headaches, but it won’t wipe the company out. Companies without those protections in place, however, risk allowing ransomware to bankrupt their entire enterprise.

A recent order from the United States Bankruptcy Court for the Southern District of Texas (the “Court”) allowed a debtor to reopen a completed auction based on a significantly more attractive, but untimely, bid. The late bid was approximately three times the cash consideration of the previously declared winning bid, and also provided for the additional containment of potential environmental risks. The decision is being appealed to the United States District Court for the Southern District of Texas (the “District Court”).

The investigation of misadvised defined benefit (DB) pension transfers has been a key focus area for the Financial Conduct Authority (FCA) following a review which deemed many transfers were unsuitable – including the high-profile restructuring of the British Steel Pension Scheme in 2017 which left thousands of members with little time to make complex investment decisions.

Judge Craig Whitley’s recent transfer of the LTL Management case will bring a high-profile "Texas Two-Step" chapter 11 bankruptcy to New Jersey, and it may open a new chapter in how courts approach the novel transaction designed to isolate and address certain mass-tort liabilities.

In a decision that will likely impact bankruptcy proceedings around the country, the Supreme Court recently denied the petition for writ of certiorari of David Hargreaves, which challenged the equitable mootness doctrine.¹ As a result, the concept of equitable mootness remains anything but moot.