On 28 June 2021 the Dutch government initiated a public consultation procedure concerning a legislative proposal intended to make expedited liquidation of legal entities more transparent for creditors. To achieve this goal, the Minister has proposed that the management board of a legal entity should file a number of documents with the Trade Register within 10 days of liquidation and then notify their creditors that they have done so. The proposal also allows for the possibility of disqualifying a managing director who should fail to observe the new rules.
The Hong Kong government will introduce a long-awaited statutory corporate rescue procedure (CRP) in 2021, bringing the regime more in line with international practice in jurisdictions such as the UK and the USA.
The current lack of a CRP in Hong Kong means that there are limited options available to distressed companies and the lack of a moratorium on creditor enforcement jeopardises legitimate restructuring efforts. The Companies (Corporate Rescue) Bill is timely given the difficulties brought by the current economic downturn, itself exacerbated by the impact of COVID-19.
Dutch football club ADO Den Haag has filed for WHOA proceedings after its major shareholder failed to pay €2 million due to the club, leaving it unable to meet its financial obligations.
The decision
From 1 July 2021, directors in the UK could be subject to a wrongful trading claim if their company goes into liquidation or administration.
Wrongful trading
This means that directors may be personally liable to contribute to the company’s assets:
The Hong Kong government will introduce a long-awaited statutory corporate rescue procedure (CRP) in 2021, bringing the regime more in line with international practice in jurisdictions such as the UK and the USA.
The current lack of a CRP in Hong Kong means that there are limited options available to distressed companies and the lack of a moratorium on creditor enforcement jeopardises legitimate restructuring efforts. The Companies (Corporate Rescue) Bill is timely given the difficulties brought by the current economic downturn, itself exacerbated by the impact of COVID-19.
The German Federal Court of Justice was recently asked to decide whether a waiver in favour of company director had been validated by the preliminary insolvency administrator's consent.
Background
The decision provides new judicial guidance for determining the boundaries of cross-class cram down tests.
On 28 June 2021, the High Court declined to sanction a restructuring plan proposed by Hurricane Energy plc (Hurricane), an AIM listed oil drilling company, under Part 26A of the Companies Act 2006 (Act). The plan would have seen shareholders diluted to 5% of Hurricane’s equity, with the remaining 95% issued to bondholders as consideration for a partial debt-for-equity swap.
Austria is gearing up to implement the EU Directive on Restructuring and Insolvency (known as the Restructuring Directive). We anticipate that the Restructuring Regulation (ReO) will enter into force on 17 July 2021.
The core element of the Restructuring Directive (and of the implementing law) is the promotion of a new restructuring procedure, to avoid the need for formal insolvency proceedings.
The restructuring proceedings
Wie Bauunternehmen und Bauherren vorbeugen können
Seit dem vierten Quartal 2020 sind die Preise für Baustoffe stark angezogen. Medienberichten zufolge verteuerte sich allein der Preis für Holz um 15-20 %, der Preis für Mineralölerzeugnisse steigerte sich um 15 %, für Dieselkraftstoffe um 20 %. EPS-Dämmstoffe für Fassaden kosten sogar rund 25 % mehr, als dies noch im Dezember der Fall war. Betonstahl ist seit September nochmals um 30 % teurer geworden.