With the increase in global trade and business, often involving complex corporate structures in multiple jurisdictions, we expect to see a significant increase in cross-border insolvency and restructuring matters in coming years. This is especially the case with rapid advancements in technology and digital change driving “borderless” transactions and investments in every industry.
On 7 December 2022, the European Commission published the Proposal for a Directive of the European Parliament and of the Council harmonising certain aspects of insolvency law. This Proposal is intended to harmonise the insolvency laws of EU member states in order to make insolvency proceedings more predictable and efficient. The Proposal also includes a number of principles the pre-pack proceedings in each member state must meet.
The Proposal defines pre-pack proceedings as:
Einde aan overdrachts- en verpandingsverboden om het kredietpotentieel van het bedrijfsleven te vergroten
Inleiding en huidig recht
On 26 May 2020, the Act on the confirmation of private restructuring plans (Wet homologatie onderhands akkoord or WHOA) was adopted by the Dutch parliamentary House of Representatives (Tweede Kamer). The Dutch Senate (Eerste Kamer) will now have the final vote. Parliamentary consultations in the Dutch Senate will take place on 9 June 2020.
Op 17 maart jl. nam de regering uitzonderlijke maatregelen om de economische gevolgen van de corona uitbraak het hoofd te bieden. Met noodmaatregelen probeert de regering ondernemingen overeind te houden. Het blijft onzeker of die maatregelen voldoende financiële ruimte geven om de salarissen en schuldeisers (op termijn) te betalen. We bespreken daarom in deze bijdrage een uiterste redmiddel: de wettelijke procedure van surseance van betaling.
Surseance van betaling (uitstel van betaling)
The Act on the confirmation of private plans (Wet homologatie onderhands akkoord or WHOA) was submitted to the Dutch parliament last year and, once adopted, introduces a framework under which tailor-made (financial) restructuring plans can be implemented outside formal insolvency proceedings.
The WHOA combines elements of the English Scheme of Arrangements, US Chapter 11 and the EU Restructuring Directive (EU 2019/1023).
The following is an overview of the WHOA's most important features.
The procedure
This is often a question for faced by office-holders of insolvent companies when investigating a company’s affairs, and more of a concern for former directors and shareholders when potentially facing a claim for the return of unlawful dividends or misfeasance.
TV rental business, Box Clever, was created as a joint venture between Granada (now ITV) and Thorn (now Carmelite).
The Box Clever business was later sold and administrative receivers were subsequently appointed over Box Clever companies.
The Pensions Regulator (“TPR”) issued Financial Support Directives (“FSDs”) against five ITV companies in relation to the Box Clever defined benefit pension scheme. ITV referred the determinations to the Upper Tribunal.
In the wake of the Carillion insolvency and the Toys R Us administration, there are contrasting tales from two different UK businesses.
The engineering business Rolls-Royce is going against the trend and has announced that it will keep its defined benefits pension scheme open for current members until January 2024.
The scheme is running at a £1.4 billion surplus, which will also allow the company to decrease its contributions to its defined benefit retirement fund by £145 million over the next three years.