Kandola v Mirza Solicitors LLP [2015] EWHC 460 (Ch)
A recent decision of HHJ Cooke in the Chancery Division of the High Court in Kandola v Mirza Solicitors LLP [2015] EWHC 460 (Ch) has provided some useful guidance on solicitors' duties to advise as to the risk of insolvency of the vendor when acting for purchasers in property transactions where deposits are held as agents for the vendor. It also provides guidance on solicitors' duties generally when advising on risks in transactions.
The Facts
The UK is to ratify the Cape Town Convention and its Aircraft Protocol (together, Cape Town). This may help UK aircraft operators access cheaper capital markets funding. But that cheaper funding may require the UK, in effect, to adopt Cape Town's "Alternative A" insolvency regime. Section 1110, US Bankruptcy Code (on which Alternative A is based) has worked well in US airline restructurings. But Alternative A may not mesh well with English insolvency law. Will Alternative A hamper restructurings of UK operators of helicopters and other aircraft?
The Law of the Republic of Kazakhstan No. 176-V “On Rehabilitation and Bankruptcy” dated 7 March 2014 (hereinafter the “Rehabilitation Law”) was amended as follows:
Factoring is a common way for businesses to monetize current assets. Typically, in a factoring transaction, an enterprise sells its accounts receivable to a third party (commonly a bank, but not always), which, in exchange for a discount on the value of the receivables, takes on the effort and time commitment related to collecting the accounts.
The recent decision by the Court of Appeal for Ontario (the “Court”) in 306440 Ontario Ltd. v. 782127 Ontario Ltd.1 serves as a cautionary reminder to secured creditors that their position may not always be at the top of the insolvency food chain, even when they have taken all the proper steps to perfect their security interests.
In late December 2014, Russia adopted major changes to its insolvency (bankruptcy) law. Critically, the changes introduced the long-awaited regulation of individual insolvency (personal bankruptcy), with the aim of closing the regulatory gap and supporting individual debtors struggling during Russia's economic downturn.1 Some time has passed since the initial draft law on individual insolvency (personal bankruptcy) was first delivered to the Russian Parliament back in 2012.
Nigel Barnett talks about bribes and other proprietary rights in insolvencies.
Introduction
For over 150 years, it has been a principle of English law that if an agent takes a bribe or a secret commission, he is liable to account to his principal for the amount received. However, there has been conflicting authority and academic debate as to whether the principal merely has a personal claim against the agent or whether he can assert a proprietary claim to the monies received and any profits made therefrom.
On December 1, 2014, the Court of Appeal for Ontario (the “Court of Appeal”) released its decision, written for the Court of Appeal by Madam Justice Pepall, in Bank of Nova Scotia v. Diemer, 2014 ONCA 851 (“Diemer”). The Court of Appeal dismissed the court-appointed receiver’s (the “Receiver”) appeal of the order of Justice Goodman, which, among other things, reduced the fees of counsel (“Counsel”) to the Receiver.
This article first appeared in the December 2014 edition of Corporate Rescue & Insolvency journal. Written by Deepak Reddy in Dentons' New York office, Carlo Vairo in Dentons’ Toronto office and Alexander Hewitt in Dentons' London office.
Key Points
When undergoing a restructuring, a borrower/officeholder's main focus is often the company's lenders. However, there are occasions when HMRC's agreement can be just as key to ensuring any process runs smoothly. In this article, Sonia Jordan and Hayley Çapani discuss some key areas where HMRC's agreement is essential to ensuring a smooth restructuring or insolvency process.