The Insolvency Service published its quarterly statistics on company insolvency and individual procedures showing:
According to recent press reports, Dave Forsey, Chief Executive of Sports Direct, is the latest (and most high-profile) executive to be hit by court proceedings concerning alleged failure to comply with redundancy notification procedures - in his case in his former position at fashion retailer, USC. As these and other reports confirm, there is clear evidence that the Insolvency Service is increasingly proactive in pursuing organisations, their senior personnel and insolvency practitioners who fail to file the requisite redundancy notification form (HR1) on time.
With the first PPF levy invoices based on the new Experian insolvency-risk assessment model starting to land on trustees’ door-mats, many schemes have made the unwelcome discovery that their PPF levy for 2015-16 has suffered a substantial hike. Around 200 schemes are reported to have seen levy rises in excess of £200,000.
Credit Today reports that recent statistics from the Accountant in Bankruptcy (AiB), the government agency that administers the insolvency regime in Scotland, have revealed that:
The Insolvency (Protection of Essential Supplies) Order 2015 which comes in to force on 1 October 2015 significantly changes the options available for suppliers of IT services in relation to their rights against insolvent customers. Any IT supplier caught within the definition of the new legislation will need to beware that they can no longer insist on payment of outstanding invoices as a condition of continued supply to an insolvent business, nor rely on clauses applying automatic price rises upon insolvency of the customer.
(1) PST Energy 7 Shipping LLC and (2) Product Shipping and Trading S.A. v (1) OW Bunker Malta Limited and (2) ING Bank N.V. [2015] EWHC 2022 (Comm)
This is the fifth in a series of Alerts regarding the proposals made by the American Bankruptcy Institute Commission to Reform Chapter 11 Business Bankruptcies. This alert covers the Commission’s recommendations regarding the now predominant practice of selling substantially all of the debtor’s assets as a going concern, free of all claims, at the outset of a bankruptcy case. The process, known as a “363 Sale” for the Bankruptcy Code section that applies, has been hailed as a job-saving measure and condemned for giving all value to lenders and none to other creditors.
Will Congress Finally Act?
This is the fourth in a series of Alerts regarding the proposals made by the American Bankruptcy Institute Commission to Reform Chapter 11 Business Bankruptcies. We discuss here the Commission’s efforts to require that debtor’s management act in a more transparent fashion. For copies of this or any prior articles about the Commission, please contact any BakerHostetler bankruptcy attorney.
This is the fourth in a series of Alerts regarding the proposals made by the American Bankruptcy Institute Commission to Reform Chapter 11 Business Bankruptcies. We discuss here the Commission’s efforts to require that debtor’s management act in a more transparent fashion. For copies of this or any prior articles about the Commission, please contact any BakerHostetler bankruptcy attorney.
Will Congress Finally Act?
This is the third in a series of Alerts regarding the proposals made by the American Bankruptcy Institute’s Commission to Reform Chapter 11 Business Bankruptcies. It covers the Commission’s recommendations about the fiduciary obligations of a Chapter 11 debtor’s directors and officers and proposed changes to typical defenses asserted to state causes of action. For copies of this or any prior articles about the Commission, please contact any BakerHostetler bankruptcy attorney.
Director and Officer Fiduciary Duties in Chapter 11