Current state of play

Summary

English insolvency law is about to change, making it harder for IT suppliers to stop supplying when a customer goes into an insolvency procedure. The aim is to help administrators and others to secure the supply of IT products and services that might be needed to rescue failing businesses. 

Important changes to Italian bankruptcy law with particular respect to the composition with creditors (concordato preventivo) and restructuring agreements (accordi di ristrutturazione) have entered into force on 27 June 2015.

Summary

We reported in December 2014 that the amendments to the EC Regulation on Insolvency Proceeding (the Recast Regulation) were virtually finalised and agreed between the various legislative organs of the European Union.

Finally after several years, the debate is now over and the European Parliament has now approved the final text – broadly as it was in December 2014. The outcome is good news for cross border corporate restructurings and insolvencies around Europe, but it will not come into force for over two years.

Next steps

As Seen in Law 360

Bill could significantly alter medical and financial disclosures in asbestos cases

West Virginia State Senate passes SB 411, creating the Asbestos Bankruptcy Trust claims Transparency Act and the Asbestos and Silica Priorities Act. Next, the bill goes to the House of Delegates for review and likely passage.

A recent bankruptcy decision from the Southern District of New York should caution business partners about the risks presented if the partnership becomes bankrupt. Limited liability partnerships present advantages such as flexibility in the operation of the business and tax advantages. LLPs also provide protection for partners from the business’ debts. As a result, LLPs are popular among professionals, including attorneys. 

The “discharge injunction” of Section 524 of the Bankruptcy Code is one of the most, if not the most, important features of United States bankruptcy law. Debtors in bankruptcy must complete detailed paperwork regarding their assets and liabilities and either turn over their non-exempt assets to a bankruptcy trustee or execute a payment plan that repays all or a portion of their debt.

Summary of recommended changes to the Bankruptcy Code from the ABI Commission to Study the Reform of Chapter 11

Summary of recommended changes

This chart summarizes the Recommendations in the Commission’s Report that relate to or would have an impact on creditors’ rights.

Background

Investment

Direct statements