This legal guide summarises the scope of directors’ duties when a British Virgin Islands company encounters financial difficulties.
Introduction
This legal guide should be read in conjunction with the legal guide entitled “Duties of a director under British Virgin Islands Law” which describes in further detail the duties which British Virgin Islands law imposes on a director generally.
While it had been clear for most of the recent economic downturn that the 24% of Hong Kong Stock Exchange (HKSE) listed companies incorporated in Bermuda may have recourse to the court in their place of incorporation to secure an adjournment or stay of an actual or anticipated winding up petition in Hong Kong, it is now equally clear that Cayman incorporated companies (which represent another 50% of the HKSE) will have similar access to restructuring assistance.
This briefing note provides an overview of some of the commercial reasons for and the technical legal requirements of a company wishing to acquire its own shares (also referred to as “share buy-backs”).
Hot on the heels of the landmark changes to the insolvency landscape brought by the Corporate Insolvency and Governance Act 2020 (CIGA) (see our previous article on CIGA), the Government recently announced reforms relating to pre-packaged administration sales to connected parties.
We recently reported on Delaware Judge Christopher Sontchi’s decision in the Extraction bankruptcy to permit the rejection of midstream gathering agreements.1 Fellow Delaware Judge Karen Owens followed Extraction in the Southland Royalty decision issued November 13, 2020.2 Judge Owens determined that Southland Royalty Company, LLC (“Southland”), an E&P operator with assets primarily in Wyoming, could reject the gas gathering agreement and sell its assets free and clear of the agreement.
Summary of decisions In re Body Transit, Inc., No. BR 2010014 ELF, 2020 WL 1486784 (Bankr. E.D. Pa. Mar. 24, 2020).
Straffi v Aeris Bank (In re Hillesland), No. 1925278( CMG), 2020 Bankr. LEXIS 2235 (Bankr. D.N.J. Aug. 17, 2020).
Case Snapshot The Bankruptcy Court held that a chapter 7 trustee could avoid judgment creditor’s lien pursuant to his “strongarm” powers under section 544(a) of the bankruptcy code because the judgment creditor did not make a good faith effort to locate debtor’s personal property before it levied against real property, as required under applicable New Jersey law.
In re Tribune Company, et al. No. 182909 (3d Cir. filed Aug. 26, 2020).
Case Snapshot
In re Affordable Auto Repair, Inc., No. 6:19bk18367MW, 2020 Bankr. LEXIS 2366 (Bankr. C.D. Cal. Sept. 2, 2020).
Case Snapshot
2020 has seen a significant increase in chapter 11 filings by oil and gas producers. Critical to the operations of these companies, and to the transportation and processing of the producer’s gas, are gathering agreements entered into between the producers and midstream companies. A pivotal question posed at the start of these chapter 11 proceedings is whether the gathering agreements are executory contracts subject to rejection or whether they create real property interests that cannot be rejected in chapter 11 proceedings. The answer depends on who you ask.