Schemes of arrangement (“schemes”) have become the restructuring tool of choice for English companies or overseas companies that have English law-governed debts.

Introduction

The UK Supreme Court judgment in BNY Corporate Trustee Services Limited and others v Eurosail-UK 2007-3BL PLC [2013] UKSC 28 was handed down on 9 May 2013. It considered: (a) the meaning of the balance sheet insolvency test as laid out in section 123(2) of the UK Insolvency Act 1986 (the "Act"); and (b) the legal effect of a post-enforcement call option ("PECO") and, in particular, whether the existence of a PECO is relevant to an assessment of balance sheet insolvency.

AMR Corp. and its subsidiaries (collectively “AMR”), including American Airlines Inc., filed for Chapter 11 protection in the Bankruptcy Court for the Southern District of New York (the “Court”) on November 29, 2011.

On May 15, 2012, the United States Court of Appeals for the Eleventh Circuit issued an important opinion1 in the ongoing fraudulent conveyance litigation brought by the unsecured creditors’ committee in the bankruptcy of homebuilder TOUSA, Inc. (“TOUSA”).

London - On 29 February 2012, the UK Supreme Court handed down judgment in the much publicised ‘Lehman client money’ case1, ruling in favour of those clients of Lehman Brothers International (Europe) (“LBIE”) whose money ought to have been, but never was, segregated from other assets held by LBIE.

On July 6, 2011, the Board of Directors of the Federal Deposit Insurance Corporation (“FDIC”) approved a final rule (the “Final Rule”) addressing certain provisions of the Orderly Liquidation Authority (“OLA”) contained in Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”).1

In a recent decision, the United States Bankruptcy Court for the Southern District of New York ruled that a certificateholder of two CMBS securitization trusts (“CMBS Trusts”) had no standing to be heard in a chapter 11 case involving the borrowers under a securitized mortgage loan held by the CMBS Trusts.

On March 15, 2011, the Federal Deposit Insurance Corporation (“FDIC”) issued a notice of proposed rulemaking (“NPR”) to implement certain orderly liquidation authority (“OLA”) provisions of Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”).

The judgment of the Court of Appeal (the “CA”) in BNY Corporate Trustee Services Limited v Eurosail-UK 2007-3BL PLC & Ors [2011] EWCA Civ 227 was handed down on 7 March 2011.

On January 18, 2011, the Federal Deposit Insurance Corporation (“FDIC”) approved an interim final rule (“Interim Rule”), with request for comments, to implement certain provisions of Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”).