Your former employee sues you, but your employee-plaintiff filed for bankruptcy. You diligently research the bankruptcy filings and discover the employee did not disclose the lawsuit against you in those filings, which are sworn to under oath. You might have a winner to get out of the case, right? Well, it is not quite that simple, according to a recent ruling in Georgia.

Recently, in Artesanias Hacienda Real S.A. De C.V. v. North Mill Capital, LLC; Leisawitz Heller, the Third Circuit held that creditors can pursue claims of the bankruptcy estate that have been abandoned by the trustee.

Earlier this year, Chapter 11’s new Subchapter V became a part of the Bankruptcy Code when the Small Business Reorganization Act of 2019 (SBRA) became effective.

In practice, it is not uncommon for bankruptcy debtors to file suit against creditors or debt collectors for stay and discharge injunction violations. Often, they will do so before making any meaningful attempt to communicate with the creditor or debt collector to request that they stop their improper collection efforts.

In the second of our series of articles on the much anticipated Corporate Insolvency and Governance Bill (the “Bill”), which will enact various new corporate restructuring tools well as make temporary changes to insolvency law as a result of the coronavirus, we focus on the temporary changes to the law regarding the suspension of liability for directors for wrongful trading during the coronavirus pandemic.

The much anticipated Corporate Insolvency and Governance Bill(the “Bill”), which will enact various new corporate restructuring tools as well as the temporary changes to insolvency law that have been announced by the government since the onset of the COVID-19 pandemic, was finally published on Wednesday 20 May.

View our series of articles summarising the Bill:

The Government has now published the much anticipated Corporate Insolvency and Governance Bill (the “Bill”), which will introduce various new corporate restructuring tools as well as the temporary changes to insolvency law that have been announced by the Government since the onset of the COVID-19 pandemic.

In the very unusual period in which we find ourselves today, it seems to be common wisdom that an avalanche of commercial loan defaults is coming. As such, it is a good time to take a fresh look at the terms and provisions used in commercial workout documents, whether in a simple agreement that extends a maturity date or in a complex forbearance document that restructures the collateral arrangement and financial covenants.

Click here to watch the video.

COVID-19 Webinar Series

Two recent cases demonstrate the efficacy of existing restructuring regimes under Irish company law and more particularly that the Courts in Ireland are receptive and efficient in approving and implementing large multi-jurisdictional restructuring schemes.

Ballantyne – Scheme of Arrangement