On September 19, 2022, the District Court for the Eastern District of Virginia entered an Order1 adopting the Report and Recommendation of the Chief Bankruptcy Judge2 approving the fe
Tras dos años y medio desde que empezara la crisis del COVID-19 y a las puertas de una recesión económica, surgen novedades importantes en el Derecho de la Insolvencia en España.
In a decision that may encourage continued sales from suppliers to distressed entities, the Eleventh Circuit in Auriga Polymers Inc. v. PMCM2, LLC1 joined the Third Circuit,2 the only other circuit to directly address the issue, in concluding that post-petition payments for the value of goods received by a debtor within 20 days before the petition date, authorized by 11 U.S.C. section 503(b)(9), do not reduce a creditor's "subsequent new value" preference defense.
I. Preferences in a Nutshell
On 26 June 2019, the Directive on restructuring and insolvency[1] of the European Parliament and of the Council was published in the Official Journal of the European Union.
The ‘roaring twenties’ of this century have left the business world in constant turmoil. After emerging from the pandemic, geopolitical tensions and the resulting economic uncertainty have pushed companies to rethink their organisational structures and rework their operating models and supply chains. Digitalisation and automation of the workforce is now at the forefront as businesses respond to rapidly changing customer needs. All of this requires companies to focus strategically on change management, as well as major workforce restructurings and reorganisations.
Podwyższeniu ma ulec maksymalny wymiar kar pieniężnych nakładanych na związki przedsiębiorców przez organ ochrony konkurencji i konsumentów. A w przypadku niewypłacalności związku, przewiduje się odpowiedzialność solidarną jego członków.
A bankruptcy court’s recent decision in Bailey Tool & Mfg. Co., et al. v. Republic Bus. Credit (In re Bailey Tool & Mfg. Co.), Adv. No. 16-03025-SGJ (Bankr. N.D. Tex. Dec. 23, 2021) serves as a reminder for lenders that they should avoid certain actions when dealing with distressed borrowers. Specifically, in Bailey, a bankruptcy judge found a lender squarely at fault for its borrower’s bankruptcy and subsequent liquidation, and held the lender liable to the borrower’s bankruptcy estate for various breach of contract, tort, and bankruptcy claims.
Within the past 18 months, two bankruptcy courts have used the same factors, but reached opposite conclusions, about the characterization of two merchant cash advance funding transactions as either a “true sale” or not a “true sale” – and instead, a disguised financing. In doing so, the courts’ decisions confirm the importance of appropriate structuring to achieve true sale treatment.
On 10 October, the Dubai Court of First Instance issued a potentially ground-breaking judgment in respect of directors’ liability in the context of corporate insolvency.
In particular, in the matter of the liquidation of the public company Marka PJSC (“Marka”), the Court held the company’s board of directors and managers personally and jointly liable for the company’s outstanding debts, totalling close to AED 450 million.
In an underreported amendment to the Bankruptcy Code, the Small Business Reorganization Act amended §547(b) of the Code to add an explicit requirement for the bankruptcy trustee or debtor in possession to conduct “reasonable due diligence” before filing a preference action. The apparent goal of this amendment to the Bankruptcy Code is to reduce the number of frivolous preference lawsuits pursued by trustees.