Kiely Rowan plc the company which owns the business of Irish designer Orla Kiely went into liquidation last week. The retailer closed its online shop as well as one in Kildare Village and two in London. This is very sad for the employees and customers of Orla Kiely as well as her creditors.

However, what does it mean when one hears that a company has gone into liquidation?

House of Fraser, the struggling UK department store has gone into administration but is to be acquired by billionaire Mike Ashley, the owner of Sports Direct. There are regulatory difficulties with his acquisition of the Dundrum branch at the moment, but it is anticipated that the entire group including Dundrum will be fully operational in good time to capitalise on the Christmas market.

However, what does this mean for customers with unused gift cards?

A recent case in the UK (Phones 4U Limited -v- EE Limited) serves as a warning to businesses of the unintended, and potentially costly, consequences of issuing inadequate termination notices to contractual counterparties.

Background

McDowell Purcell represented a creditor in a recent application to the High Court where Justice Costello granted an Order for Sale on foot of an equitable charge held by the applicant, over properties of the respondent who had been adjudicated a bankrupt.

Application

In the recent decision in LBI EHF v. Raiffeisen Bank International AG [2018] EWCA Civ 719, the Court of Appeal has considered the close-out valuation provisions for "repo" trades entered into under a Global Master Repurchase Agreement (2000 edition). The court refused to limit the wide discretion given to a non-defaulting party to determine fair market value under the GMRA.

The factual background

Introduction

Under reforms commencing in July 2018, Australia will have new insolvency laws which will limit the exercise of contract rights to terminate for insolvency. Partners David McIntosh and Robyn Chatwood, explain how these reforms will impact the retail sector in Australia, including suppliers of goods and services and lenders.

Background

In good news for liquidators, the Federal Court’s decision in Marsden (liquidator) v CVS Lane PV Pty Limited Re: Pentridge Village (in which Dentons acted for the liquidator) confirms that time will be extended for liquidators who are unable to bring voidable transaction proceedings within the relevant timeframe due to a lack of funding.

The case also has wider implications. It could be relied upon by liquidators to justify subsequent claims which could otherwise have been brought at an earlier stage if funding had been available.

Friendly societies, along with other mutual societies, are registered with and regulated by the Financial Conduct Authority under the Co-operative and Community Benefit Societies Act 2014 (the Act).

The High Court delivered a stark reminder to personal insolvency practitioners (PIPs) that they serve an integral role in upholding the legitimacy of the bankruptcy process in a judgment delivered on 5 February 2018.

Background

The judgment arose out of an application by the Official Assignee (“OA”) to postpose the automatic discharge of a bankrupt. The OA submitted that the bankrupt had hidden assets from or failed to disclose assets which could have been realised for the benefit of the creditors of her estate.

Ministerial Decisions

Amending the Classification Guide of the General Budget of State (Annex 1), attached to the Executive Regulations of the Finance Law (MD 118/2008). Issued on 24 January 2018. Effective from the issue date.

Promulgating the Regulations on school assemblies. Issued on 25 January 2018. Effective from 11 February 2018.

Official Announcements