Earlier this year, the Pension Protection Fund (PPF) published its consultation on the second PPF Levy Triennium (2015/16 to 2017/18) which proposed wholesale changes to the measure of insolvency risk and significant changes in respect of contingent assets and the PPF’s treatment of asset-backed contributions.
As we await the outcome of the consultation, employers and trustees may find a summary of the proposals helpful in trying to gauge how they could impact their scheme’s PPF levy.
The PPF-specific insolvency risk model
On April 14, in In re Free Lance-Star Publishing, 512 B.R. 798 (Bankr. E.D. Va. 2014), the U.S. Bankruptcy Court for the Eastern District of Virginia considered the objection of Chapter 11 debtors to a secured creditor's right to credit bid at a sale of the debtors' assets pursuant to 11 U.S.C. Section 363.
In the case of United States of America v. Edward P. Bond, No. 12-4803 (2d. Cir. August 13, 2014), the United States Court of Appeals for the Second Circuit (the "Second Circuit") issued a decision that could have far-reaching effects on how liquidating chapter 11 bankruptcy cases will be handled in the future.
The New Jersey Supreme Court, in In re: Princeton Office Park, L.P. v. Plymouth Park Tax Services, LLC, determined that under the Tax Sale Law, N.J.S.A. §§ 54:5-1 to -137, a purchaser of a tax sale certificate acquires a tax lien, not a lien securing the property owner's obligation to pay the amount owing to redeem the certificate.
In Executive Benefits Insurance Agency, petitioner vs. Peter H. Arkison, Chapter 7 Trustee, Case No. 12-1200, 573 U.S. __(2014) the United States Supreme Court ( Court) delivered its opinion as a follow up to its landmark decision in Stern v. Marshall. In Stern v.
Following the Court of Appeal’s decision in Game it is necessary to consider the effect of the court’s decision on the treatment of rents in administration and by analogy liquidation – and the potential consequences of that change.
What types of insolvency does the decision affect?
The Court of Appeal’s decision explicitly states that it is applicable as to the treatment of rents in both administration and liquidation.
What about existing cases?
In its bankruptcy filing under Japan's Civil Rehabilitation Law, Mt. Gox claims 6.5 billion yen, or around $64 million, in liabilities and 3.84 billion yen, or around $38 million, in assets.
Michael John Andrew Jervis v Pillar Denton Limited (Game Station) and others [2013] EWHC 2171 (Ch) (“Game”)
Game has come to the courts against the background of two previous High Court decisions on the treatment of lease rents in administration. Recent decisions on this point have arisen out of cases where landlords made claims for rent in the administration of tenant companies.
Last week, the 8th Circuit B.A.P. affirmed, first noting that criminal judgments, including restitution awards and liens, are afforded special protection from bankruptcy discharge.
In a recent judgment, HHJ Cooke found in favour of the defendant solicitors in a claim by the Trustees in Bankruptcy of Clifford Shore that Irwin Mitchell had failed properly to advise Mr Shore as to the risk of pursuing litigation that was subject to limitation arguments.
Kevin Hellard, Amanda Wade v Irwin Mitchell [2013] EWHC 3008 (Ch)
Background