In our recent article of 4 November 2014 we referred to a new case where the controversial decision in Raithatha v Williamson would be reconsidered. 

On 17 December 2014 the High Court handed down judgment in the case of Horton v Henry. The decision has been highly anticipated. 

The High Court has declined to follow an earlier decision and ruled that a trustee in bankruptcy could not gain access to pensions benefits that were not already in payment.

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

In June 2014, the new insolvency complaints gateway celebrated its first birthday. This was followed by a report assessing its performance against a number of rather challenging ambitions. We analyse the report’s findings and the effect of the gateway to date on consumers, insolvency practitioners and their insurers.

Background

When trying to enforce security over property, it is important for a lender to consider the order in which the proceeds of sale will be distributed – a matter decided by the priority of any charges that exist. The general rule is that whichever legal charge is entered onto the charges register has priority, but this isn’t always the case.   

Scenarios where priority may be different 

McKellar v Griffin emphasises the importance for IPs of establishing the COMI of a foreign company before accepting an appointment as administrators. 

In McKellar (decided in June 2014) the court, on the application of a foreign liquidator, declared that the administrators’ appointment was invalid because the company’s COMI was not in England and Wales. So where does that leave unfortunate insolvency practitioners in similar situations? 

In March the Government announced new pension reforms. From April 2015 pensioners reaching 55 years will be entitled to draw down their entire pension pot, to do with as they wish. Pensions minister Steve Webb was famously quoted as saying that pensioners should be able to “buy a Lamborghini” with their pension pot if they so wish. And if pensioners subsequently ran out of money, well, they would have the state pension to fall back on, after all. 

Pension deficits are by no means the only concern for charities, but they present a severe headache.

There are over 180,000 charities registered in England and Wales, employing around 2,660,000. 
Between them, the Charities Commission has reported a combined pensions deficit of over £3.4 billion. For some charities, the burden of meeting that deficit puts too much of a strain on already stretched resources. 

Investment

Direct statements

Much Anticipated Extraterritoriality Ruling Could Have Far-Ranging Implications