Can we learn sufficient lessons from Carillion to avoid construction related insolvency closer to home?
1. PUTTING INSOLVENCY ON THE AGENDA
Many tax-exempt organizations can now change their state of organization and retain their current tax exemption.
Following a High Court decision of 1 November 2017 , it seems that the High Court will assess an objection by a secured creditor to a personal insolvency arrangement (PIA) differently depending on whether the creditor is a bank (or other originating lender) or a loan purchaser that is not a bank.
Two key changes made to Australian insolvency law enhance restructuring efforts in Australia and could improve outcomes for US investors.
The court awarded OpCo Noteholders in excess of $320 million in Make-Whole Amount and post-petition interest, confirming that make-whole is an enforceable liquidated damage claim.
In this regular briefing, we summarise recent cases, developments and trends relevant to the ongoing efforts to resolve the mortgage arrears crisis.
CASELAW
Personal Insolvency
A series of recent cases have shed further light on factors that a Court will take into account when hearing a debtor’s appeal of a secured creditor’s decision to reject a proposed Personal Insolvency Arrangement (PIA) under the Personal Insolvency Act 2012 (the 2012 Act).
On 22 May 2017, the High Court delivered judgment in favour of two homeowners, Paula and Colm Callaghan, allowing a significant write-down of their mortgage debt and rejecting a proposal by their lender, KBC, that the debt should instead be deferred or ‘warehoused’ for future enforcement.
BACKGROUND
The Callaghans had a mortgage with KBC for over €285,000 for their family home which was valued at just €105,000. The mortgage fell into arrears and the Callaghans sought to enter into a personal insolvency arrangement (PIA).
The Gibraltar Financial Services Commission has announced the appointment of independent inspectors to investigate the insolvency of Enterprise Insurance Company plc and the conduct of its directors and auditors. The company had a large exposure in Ireland having sold motor insurance to Irish consumers.
The Central Bank's update is available here.
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Court holds that TIA § 316(b) prohibits only non‐consensual amendments to an indenture’s core payment terms.