The Bottom Line
In Wheeling & Lake Erie Ry. Co. v. Keach (In re Montreal, Me. & Atl. Ry.), No. 19-1894 (1st Cir. Apr. 9, 2020), the First Circuit held that when determining the value of legal claims as collateral, the party with the burden of proof must establish the likely validity of the claim and the likelihood of recovery — demonstrating possible damages alone does not suffice.
What Happened?
Background
With COVID-19 causing ever increasing financial uncertainty around the globe, we thought it an apt time to provide you with a summary of the various corporate insolvency procedures in the UK applicable to companies facing financial difficulties. Taking each in turn, we will discuss administration, administrative receivership, company voluntary arrangements, schemes of arrangement and liquidation. We will also touch briefly on directors’ duties, rules relating to asset distribution on insolvency and transactions that may be set aside on insolvency or ‘reviewable’ transactions.
With COVID-19 causing ever increasing financial uncertainty around the globe, we thought it an apt time to provide you with a summary of the various corporate insolvency procedures in the UK applicable to companies facing financial difficulties. Taking each in turn, we will discuss administration, administrative receivership, company voluntary arrangements, schemes of arrangement and liquidation. We will also touch briefly on directors’ duties, rules relating to asset distribution on insolvency and transactions that may be set aside on insolvency or ‘reviewable’ transactions.
随着新冠肺炎疫情在全球范围内持续引发财务不确定性，我们认为是时候简要介绍英国法适用于陷入财务困境的公司的各种公司破产程序。下文将依次讨论管理程序 (administration)、接管程序 (administrative receivership)、公司自愿安排 (company voluntary arrangement)、债务偿还安排 (schemes of arrangement) 和破产清算 (liquidation)。此外，还将简述董事职责、有关破产中资产分配的规则以及在破产中可撤销或“可审查”的交易。
在本专业概要发文之前，英国商务、能源与产业战略部于2020年3月28日发布公告，旨在帮助处于破产拯救或重整程序中的公司继续开展交易，避免破产。简言之，英国商务大臣宣布：
Surfant sur les tensions du marché mondial des produits de protection sanitaire et leurs composants, les escrocs développent les fraudes aux fournisseurs.
Ayant choisi leur interlocuteur et se faisant passer pour un fournisseur habituel de la société ou une société détenant ces produits ou composants sous tension, ils développent une stratégie fondée sur la rareté et l’urgence pour faire effectuer sans délai des virements pour sécuriser les contrats.
Les règles de prudence doivent être d’autant plus respectées :
On March 27, the president signed into law Phase 3 of the federal stimulus program, called the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act. Title I of the act, titled the Keeping American Workers Paid and Employed Act (KAWPEA), directs, among other amounts, $349 billion to small businesses as part of an expansion of the U.S. Small Business Administration’s (SBA) Section 7(a) loan program under a new paycheck protection loan program (PPP) as well as $10 billion through an expansion to the SBA’s Section 7(b) economic injury disaster loan (EIDL) program.
As part of its economic response to the COVID-19 pandemic, yesterday the Government passed a ‘temporary safe harbour’ insolvency measure[1].
The question is not if but how deeply the global coronavirus (COVID-19) pandemic will disrupt businesses and impact future operations. That answer differs based upon each company’s industry, access to cash and other capital, debt structure, ability to manage expenses, lost revenues, and operational interruption. Certain industries, such as airlines and airline service companies, hotels, restaurants, sports and entertainment, media, and retailers, among others, are suffering immediate adverse effects. Our healthcare resources are being stretched thin.
What: This evening, March 19, Senate Majority Leader Mitch McConnell introduced a bill called the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act. The proposed bill is intended to provide relief to various sectors of the U.S. economy. Of particular interest is the Coronavirus Economic Stabilization Act of 2020, set forth in Division C, Title I of the proposed bill, which provides assistance to severely distressed sectors of the U.S. economy, including (but not limited to) airline carriers.
Who Does This Impact: