The Insolvency Rules 2016 (the 2016 Rules) have effect from 6 April 2016. A key change introduced by the 2016 Rules is a new approach to decision making, including a deemed consent procedure. The new approach is designed to ease the administrative and cost burden in insolvency proceedings, and is summarised below.

Deemed consent

The UK Court of Appeal recently considered the liability of issuers to secondary market investors under the Misrepresentation Act 1967 (the “1967 Act”) in the case of Taberna Europe CDO II Plc v Selskabet (formerly Roskilde Bank A/S) (In bankruptcy) [2016] EWCA Civ 1262. The Court found that primary and secondary investors could potentially be entitled to rely on online content, such as product presentations, which have been published in a deliberate manner, particularly if the issuer directs investors to the content.

On 6 April 2017, together with the new Insolvency Rules (England and Wales) 2016, the Investment Bank (Amendment of Definition) and Special Administration (Amendment) Regulations 2017 (the “Regulations”) will come into force.

These regulations follow an independent review of the special administration regime, undertaken by Peter Bloxham during 2013, assessing the success of the special administration regime and making recommendations of possible changes that may improve the operation and robustness of the regime.

The Southern District of New York upheld a very closely watched decision of recent years affecting bankruptcies in the oil and gas industry.

What’s on the horizon? A focus on dispute resolution in the Year of the Rooster What's on the horizon? A focus on dispute resolution in the Year of the Rooster 1 What to expect in the Year of the Rooster In this bulletin we examine some of the key dispute resolution and regulatory challenges facing business managers, financial controllers, and in-house counsel in the Year of the Rooster. 1.

The Ministry of Justice has recently published its review of the introduction of Employment Tribunal (‘ET’) fees. The fees were first introduced 2013 and many groups have raised concerns that they are a potentially serious barrier to bringing claims in the ET, particularly for less well off workers and those who have just lost their jobs.

Case law on wrongful trading has developed significantly over the past two years, with the cases of Ralls Buildersand Brooksincreasing judicial consideration of the conduct of directors in the period preceding an insolvency.

Restructuring lawyers and distressed companies alike were granted welcome relief by the US Second Circuit Court of Appeals when it overturned the decision of the District Court in the case of Marblegate Asset Management, LLC v Education Management Finance Corp.[1]

On 3 June 2016, the Supreme Court ruled that a valid right of pledge can be established on goods that are delivered subject to retention of title (of ownership). If the buyer is declared bankrupt, the conditional ownership can become an unconditional ownership if the condition precedent is fulfilled (mostly full payment of the purchase price). Next to the buyer, the pledgee can also fulfil this condition. As a consequence, these goods are not part of the bankrupt estate, so that the pledgee can take recourse against these goods.

The facts

Op 3 juni 2016 heeft de Hoge Raad geoordeeld dat er een geldig pandrecht kan worden gevestigd op zaken die onder eigendomsvoorbehoud zijn geleverd aan de koper. Indien de koper failliet wordt verklaard, kan het voorwaardelijke eigendomsrecht uitgroeien tot een onvoorwaardelijk eigendomsrecht door vervulling van de voorwaarde jegens de verkoper (veelal volledige betaling van de koopsom). Ook de pandhouder kan deze voorwaarde vervullen. Het gevolg hiervan is dat genoemde zaken niet in de faillissementsboedel vallen, maar dat de pandhouder hier verhaal op kan nemen.