Despite three recent landmark UK restructuring plan decisions, uncertainty remains around the value, if any, a plan company should offer dissenting creditors as the “deliverability price” of a plan.
Actions brought against the BHS directors by the group’s liquidators have resulted in the largest reported award for wrongful trading since the provision’s introduction, but the judgment highlights some unsettled areas of the law relating to directors’ duties.
The key distinction between a fixed and a floating charge is well established as a matter of English law.
It is essential to establish first if participating companies are under a control relationship and of the same corporate group
In its decision of 6 May 2024, the Swiss Federal Supreme Court (SFSC) clarifies the conditions for a claimant to appeal an interim decision ordering it to provide security for the defendant’s costs due to appearing insolvent or having liquidity problems (case No. 4A_93/2024 [in German]; intended for official publication).
How can creditors reduce the risk of a fixed charge being characterised as floating?
The determination as to whether a charge over a valuable asset is fixed or floating can be crucial to a creditor's recovery in an insolvency. To have two cases over the course of little more than a year providing detailed analysis of the nature of fixed and floating charges is indeed a treat. Are there any practical steps creditors can take to reduce the risk of a fixed charge being characterised as floating?
Fluctuating assets?
Consent of secured creditors with no remaining economic interest is not needed to extend the administration of a company
Osborne Clarke recently advised the administrators in two reported High Court cases which have confirmed that a "secured creditor" under section 248 of the Insolvency Act 1986 should be construed in the present tense, retaining the status of secured creditor only if it is still owed a debt by the company in administration.
In brief
A selection of newly announced legislation and court decisions reinterpreting private law.
Click here to read in Czech.
Early indications for the construction industry in the upcoming general election, JCT publishes the new Design and Build 2024 contracts, new second staircase requirement for qualifying residential buildings and a recent judgment requiring strict compliance with notice provisions in some building contracts
General election announced for 4 July 2024
In brief
A selection of newly announced legislation and court decisions reinterpreting private law.
Click here to read in Czech