FMLC has published an addendum to its March 2012 paper on legal uncertainties arising from bail-ins. The addendum addresses the points the Commission made in a recent paper. (Source: FMLC Bail-in Addendum)

In Re JT Frith Limited [2012] EWHC 196 (Ch):

• the terms of an intercreditor agreement; and
• some unwitting help from the junior creditors,

enabled a senior secured lender to benefit indirectly from the prescribed part on the insolvency of its debtor.

Existing law at a glance

The Enterprise Act 2002 introduced the prescribed part under a new section 176A(2) of the Insolvency Act 1986. It reserves part of the floating charge recoveries for unsecured creditors.

Since then, the courts have held that:

Sultani Decrees

Sultani Decree No. 37/2012

Appoints the new Board of Governors of the Central Bank of Oman, naming Dr Ali bin Mohammed bin Moosa as Deputy Chairman.

Promulgated on 18 June 2012.          Effective from 11 June 2012.

Sultani Decree No. 38/2012 

Grants Omani citizenship to the named individuals.

Promulgated on 18 June 2012.         Effective on promulgation.

The administrators of Lehman Brothers International Europe (LBIE) have announced that, following a ruling in the Frankfurt Regional Court, LBIE’s client money claim against Lehman Brothers Bankhaus AG (Bankhaus) is to be included in the insolvency claims of Bankhaus as an ordinary creditor. The judgment should result in a higher payout for LBIE’s client money claimants.(Source: Update on Client Money Held at Lehman Bankhaus)

Advances in production technology have led to an unprecedented supply of natural gas in the United States, putting downward pressure on market prices. Both the Henry Hub cash price and the NYMEX price closed below $2.00/MMBtu at times in the past month and prices continue to hover in the $2.00 range.

KEY POINTS

The onset of the global financial crisis brought into focus the extent to which the UAE’s business and economic landscape had changed. In order to continue to grow and protect existing investment, whilst also continuing to encourage new investment, the UAE Government recognised that various steps would need to be taken. In particular, legislative reform would be required in certain key areas.

FSA has published a set of frequently asked questions designed to help readers understand MG Global’s insolvency position and investors’ rights under it. (Source: MF Global Investors – Your Questions Answered)

The High Court has recently considered whether a bankrupt individual of pensionable age can be forced to draw his pension to pay his creditors.

Raithatha v. Williamson [2012] EWHC 909 (Ch)

Background

A bankruptcy order was made against Mr Raithatha on 9 November 2010. Mr Raithatha's trustee in bankruptcy applied for an income payments order (IPO) against Mr Raithatha's pension shortly before he was due to be discharged from bankruptcy. Mr Raithatha was then aged 59 and his pension scheme allowed him to draw a pension from age 55.

Sultani Decrees  

Sultani Decree No. 19/2012

Appoints HE Liyutha bint Sultan bin Ahmed Al Mughairi – the Omani delegate at the United Nations in New York – as non-residential ambassador to the Republic of Cuba and the Republic of Venezuela.  

Promulgated on 31 March 2012.

Effective on promulgation.

Sultani Decree No. 20/2012

Promotes Salim bin Said bin Salim Al Rahbi to the position of Supreme Court judge.  

Promulgated on 31 March 2012.

Effective on promulgation.