In life (as in business), as Heraclitus said, “the only constant is change.” In today’s fast-paced economy, this axiom should be kept in mind during contract negotiations, especially in a bear market.
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On July 15, 2022, Italy’s Code of Business Crisis and Insolvency (CCII or Crisis Code) took effect, following three previous measures: (i) Legislative Decree 14/2019, (ii) the “corrective” Legislative Decree 147/2020, and (iii) Legislative Decree 83/2022 implementing European Directive 2019/1023 (although some minimal parts of the Crisis Code are already in effect).
In a hearing yesterday, 6 April 2022, the High Court considered an application of the directors of VTB Capital PLC (VTB UK) for the appointment of Teneo Financial Advisory Limited as administrators.
In what Mr Justice Fancourt described as “an unusual case in all sorts of ways”, the English High Court was faced with a number of questions relating to how the UK’s insolvency regime can interact with the sanctions packages introduced in response to Russia’s invasion of Ukraine.
Despite a valuation fight, the Senior Lenders primed by Super Senior Debt in RP1 have had their debt written off in full in RP2 without even being given the opportunity to vote on the latter restructuring plan.
The case emphasizes that it is not enough for junior creditors to send letters to the court objecting to the RP and then expect the court to argue their case for them. In the words of Lord Justice Snowden, “they must stop shouting from the spectators’ seats and step up to the plate”.
An analysis of the UK’s corporate rescue tools: The Company Voluntary Arrangement, the Scheme of Arrangement and the Restructuring Plan.
When it comes to options for the rescue of a distressed UK corporate, there had for a very long time been a growing mood of regret amongst practitioners that there was no comprehensive restructuring tool. That all changed with the introduction of the Restructuring Plan (RP).
But, as with all things new, the evitable question is: what happens to the old?
We are delighted to see that yesterday 7 December 2021, the Companies (Rescue Process for Small and Micro Companies) Act 2021 was commenced. The process is designed to make rescue more accessible and affordable to small/micro companies that are in distress but fundamentally viable. The Department of Enterprise, Trade & Employment has launched a dedicated web page in relation to the process.
Two recent High Court judgments could benefit an estimated 20,000 people with long-term mortgage arrears in Ireland. The judgements show how workable solutions can be found without having to go to Court, with significance being placed on the proposed solutions being reasonably achievable and not strongly opposed by creditors.
Fennell v Personal Insolvency Acts 2012-2015
General Scheme of Companies (Small Company Administrative Rescue Process and Miscellaneous Provisions) Bill 2021 (“SCARP”) just published