On 13 October 2023, the Insolvency Service (IS), acting on behalf of the Secretary of State for Business and Trade, discontinued the disqualification proceedings which it had initiated against five former non-executive directors (NEDs) of Carillion plc, the construction and outsourcing giant that collapsed into liquidation in 2018.
Any restructuring where there are multiple tiers of debt and lenders with different interests and views can be tricky. Lenders will try to anticipate these difficulties by entering into an intercreditor agreement (an ICA) setting each lender’s ranking and rights to enforce. Typically, an ICA will allow the senior lenders at least the option of taking the lead on an enforcement or a restructuring.
On 14 March 2023, a new law (Tijdelijke wet transparantie turboliquidatie) was adopted by the Dutch legislator. This law introduces a filing obligation of the managing board that will apply to shortened liquidation procedures applied as per 15 November 2023. Under this obligation, the managing board of the company must file certain (financial) documents with the Dutch trade register and inform creditors of the company of this filing.
Nach der Implementierung des StaRUG-Verfahrens in 2021 zeichnet sich abermalig die Einführung eines neuen sanierungsrechtlichen Verfahrens ab. Auch wenn der europäische Gesetzgebungsprozess sich noch in einem frühen Stadium befindet, verspricht die bisher angedachte Art und Weise der Umsetzung der gesetzlichen Änderungen sowohl für (potentielle) Schuldner als auch für die übrigen Beteiligten im insolvenznahen Umfeld weitreichende Folgen zu haben.
This week:
On 1 November 2023, the new Luxembourg law of 7 August 2023 on the continuation of businesses and the modernisation of insolvency law (the “New Law”) entered into force. The New Law introduces new safeguard mechanisms designed to promote the continuity and preservation of businesses and the jobs that go with it. It provides for a mix of out-of-court and in-court procedures, including the option for a conciliator, the possibility of amicable agreements and judicial reorganisation procedures, and grants unfortunate but bona fide traders a second chance.
On 30 October 2023, the UK government published an update on its legislative approach for regulating fiat-backed stablecoins, following on from its consultation on the UK regulatory approach to cryptoassets and stablecoins in January 2021, and the response to that consultation in April 2022. Alongside this, it published a response to its consultation on the approach to managing the failure of systemic digital settlement asset (DSA) (including stablecoin) firms.
Restructuring plans under Part 26A of the Companies Act 2006 are a powerful tool for restructuring the debts of a company.
The Hong Kong court has granted an order forcing an uncooperative former director of a Hong Kong listed company to ratify the appointment of a Hong Kong liquidator as the sole director of the companies' four BVI subsidiaries. The court rejected the idea that the liquidators should be made to apply for fresh winding up orders in the BVI and stressed that courts should be ready to offer each other mutual assistance.
Industrial and manufacturing businesses face all kinds of challenges: pricing and competitive pressures; regulatory demands; cross-border trade regulations and obligations; and litigation risk stemming from environmental and tort claims. These challenges create risks around every corner, some even rising to the level of "bet-the-company" issues – the things that keep GCs up at night.