On October 2, the official committee of unsecured creditors in the chapter 11 cases of Lyondell Chemical Co. filed a motion for the appointment of an examiner in the U.S. Bankruptcy Court for the Southern District of New York. The committee asserts that an examiner is needed to investigate allegations of a conflicted rights offering sponsor, the debtors’ refusal to refinance the debtor-in-possession credit facility, and the debtors’ refusal to formulate a plan of reorganization with an appropriate reserve for unsecured creditors pending resolution of the committee’s adversary proceeding.

latest Distressed Assets Opportunities lists prepared by our colleagues in the Business Reorganization and Bankruptcy Group and the Real Estate Group. The lists can be accessed by clicking the hyperlinks.

The property industry has seen a dramatic decline in capital values over the last two years with peak to trough falls of approximately 44 per cent compared to a peak to trough decline of approximately 27 per cent during the recession of the early 1990s. This, together with the effect of the challenging economic climate, has led to a number of high profile insolvencies of property owners, developers and occupiers. Given the uncertain economic outlook, it is likely that these trends will continue.

Introduction

The dearth of credit available for companies in financial distress means an asset sale may be the only way to save the business and jobs. It also presents unusually attractive investment opportunities for public and private companies, private equity and hedge funds, and other investors with capital and an ability to move expeditiously.

The shipping industry was arguably one of the hardest hit by the downturn that spread around the world late last year. The severe shipping slump, evidenced by a 93.5 per cent fall in the Baltic Dry Index between the summer of 2008 and December 2008, inevitably led to insolvencies of shipping companies across the globe1. This article briefly considers the unique challenges that insolvency practitioners face when balancing insolvency procedures against the application of maritime law.

The Office of Public Sector Information (OPSI) has published The Insolvency (Scotland) Amendment (No. 2) Rules 2009. These Rules amend the Insolvency (Scotland) Rules 1986 (S.I. 1986/1915). No Regulatory Impact Assessment has been prepared in relation to these Rules as they are not expected to impose any significant burdens on business.

View The Insolvency (Scotland) Amendment (No. 2) Rules 2009, 1 September 2009  

If Departmental activity, debate in Parliament and media articles are an indication, the Federal Government’s much awaited response to the Ripoll Report is imminent.  

Summary

Exposure draft legislation has been released which proposes amendments to the GST legislation to make it clear that liquidators and other representatives of incapacitated entities are liable for GST on transactions within the scope of their appointment.

Date of effect

It is proposed that the main operative provisions of the legislation have effect retrospectively from the commencement of the GST Act on 1 July 2000.

Background

The Treasury has published the Financial Markets and Insolvency (Settlement Finality) (Amendment) Regulations 2009, which will come into force on 1 October 2009. They will amend the Financial Markets and Insolvency (Settlement Finality) Regulations 1999, following changes in insolvency law.