Global FDSI Briefing
Welcome to our latest quarterly briefing on legal developments across our global network. I hope you find the articles insightful and thought provoking. Highlights this quarter include recent developments in Italian derivatives case law, an overview of the amendments made to Spain’s insolvency regulation and the UK’s FCA issuing first warning notices against individuals.
If you have any questions or would like further information please do not hesitate to contact me, or one of our global key contacts.
[Matthew Allen]
Matthew Allen
In a matter of first impression, the United States District Court for the Southern District of New York recently held that former employees of a subcontractor of Hawker Beechcraft Corporation (“Hawker”)—a company that emerged from bankruptcy in 2013 and was purchased by Textron Inc.
Financial Services Disputes and Investigations
ECHR finds double jeopardy: Crimes sanctioned by Consob and heard by the Court of Appeal cannot be tried again in court proceedings
Overview
A recent decision from the Bankruptcy Court in the Southern District of Texas concludes that directors of a non-debtor general partner may owe fiduciary duties to a limited partnership debtor in bankruptcy whether or not such duties exist (or have been disclaimed) under the debtor's and general partner's organizational documents or applicable state law.[1] In deciding whether to dismiss an involuntary petition filed against Houston Regional Sports Network, L.P.
Pillar Denton Ltd & others v Jervis & others [2014] EWCA 180 (“Game Station”)
The outcome of this appeal has been awaited with a high degree of interest. The issue was the extent to which rent should be payable as an expense of an administration or liquidation; if it is payable as an expense, it sits near the top of the priority order for the distribution of the tenant’s assets, and will usually be paid in full. Otherwise, it is among the unsecured debts, and the landlord will have to wait for whatever dividend is ultimately payable.
The European Court of Justice (the “ECJ”) this morning delivered its ruling in the case of Hogan and Others v Minister for Social and Family Affairs, Ireland, Attorney General (the “Waterford Crystal case”). The Court held that Ireland has failed to fulfil its obligations under Article 8 of Directive 2008/94 EC (the “Directive”) on the protection of employees in the event of the insolvency of their employer.
Digital Satellite Warranty Cover Limited (“DSWC”) and Michael Sullivan and Bernard Freeman (trading as ‘Satellite Services’) v Financial Services Authority
Summary
VLM Holdings Limited –v- Ravensworth Digital Services Limited [2013] EWHC 228 (Ch)
Précis – In February 2013, the High Court ruled that businesses are permitted to use software under a sub-licence if the head licensee’s business is terminated or becomes insolvent. This ruling, however, is dependent upon the “scope of authority” given to the sub-licensor by the head licensor.
What?
How will it impact on pensions?
Under the Bankruptcy Act 1988, the general rule is that all property “belonging” to a person adjudicated bankrupt on the date of adjudication vested in the Official Assignee. The extent to which this rule extended to pension assets depended on the type of pension vehicle the person being declared bankrupt participated in and the actual terms of the pension scheme or policy.
The 1988 Act has now been amended to include detailed and prescriptive provisions relating to the treatment of pension assets on bankruptcy.