Highlights

Long-anticipated U.S. Supreme Court decision in Purdue Pharma shakes up the scope of bankruptcy releases

Insurers get increased ability to participate in bankruptcy cases

Overpayment of bankruptcy fees is not refundable to Chapter 11 debtors

The High Court has found the former directors of collapsed retail chain BHS liable for wrongful trading, misfeasant trading and individual acts of misfeasance.

Although overall quantum is yet to be decided, this has been widely reported as the largest wrongful trading award the courts have made since the introduction of the Insolvency Act 1986.

Insolvency Practitioners will welcome the UK Jurisdiction Taskforce’s (UKJT) Legal Statement on Digital Assets and English Insolvency Law, published on 17 April 2024.

Understandably the focus of corporate transactions, restructures and insolvencies tends to be big ticket issues such as finance, tax and assets.

Immigration considerations are often overlooked, potentially resulting in hidden risks and headaches for those involved. In this article, we look at the implications of such scenarios in two key compliance areas: sponsor licences and the prevention of illegal working.

What is a sponsor licence?

When a customer is made bankrupt, whose knowledge is relevant to start time running under the extra three-year time bar rules in DISP 2.8.2R(2)(b)?

Highlights

The Supreme Court held Section 363(m) is only a “statutory limitation” to accessing appellate relief in disputed bankruptcy sales that requires parties to take certain procedural steps to be effective

The Supreme Court also addressed mootness arguments and held that as long as parties have a concrete interest, however small, in the outcome of an appeal, the appeal should remain alive

The ruling provides insight as to how the Supreme Court may tackle the controversial doctrine of “equitable mootness”

Highlights

Counterparties should continue to follow their current contractual obligations

Silicon Valley Bank’s parent company bankruptcy filing will not impact contractual rights

Counterparties should be vigilant and consider alternate financing arrangements

The Moveable Transactions (Scotland) Bill aims to modernise and simplify the process for taking fixed security over moveable assets in Scotland.

Once enacted, Insolvency Practitioners (IPs) may begin to see real changes in certain aspects of the management of formal insolvency processes in Scotland. This insight sets out a high-level summary of the potential impact of the Bill for IPs if enacted in its present form.

1. Additional opportunities for refinancing

Having acted for employers on four projects in the past year where the main contractors have become insolvent, here are my 15 top actions for employers to consider when faced with main contractor insolvency.

Insolvency Practitioners should be alert to the potential impact of new and proposed corporate transparency measures.

Companies House reform and the new Register of Overseas Owners of UK Property will be largely welcomed, providing more in depth access to more reliable information which will support IPs when carrying out their duties. However, some of the insolvency specific details are yet to be confirmed and IPs will want to watch this space. We have set out a high level summary of the forthcoming changes below.