As discussed in our previous blog post, the decision for provisional liquidators to apply for directions on the distribution of funds can be a difficult one to make.
In Ristorante Limited T/A Bar Massimo v Zurich Insurance Plc [2021] EWHC 2538 (Ch), the Court considered the interpretation and legal effect of a question asked by an insurer to a prospective insured around prior insolvency issues. The insured agreed with the insurer’s question, as framed, that there were no prior insolvency issues. Insurers failed in their attempt to avoid the policy for breach of the duty of fair presentation based on alleged misrepresentation. Insolvency events in relation to other companies did not need to be disclosed.
The Hong Kong Court has broken yet more new ground by recognising Mainland reorganisation proceedings for the first time in Re HNA Group Co Limited [2021] HKCFI 2897.
On 29 September 2021 the High Court dismissed a challenge to Caffè Nero’s 2020 CVA brought by one of its landlords, Ronald Young. Young asserted that the CVA was unfairly prejudicial and subject to material irregularities (thereby engaging both grounds of challenge under s.6 of the Insolvency Act 1986), and that the CVA nominees and company directors had breached their duties by failing to adjourn or postpone voting on the CVA upon receipt of a late-in-the-day offer for the Caffè Nero group.
Click here to watch the video.
Jurisdictions across the globe have sought to expand their restructuring toolkits – spurred on by Governments seeking to support business during the pandemic. This has had a significant impact on the options available when restructuring business in Asia Pacific.
On 2 August 2021, the Treasury released a consultation paper seeking feedback on changes to improve creditors’ schemes of arrangement in Australia (the Consultation Paper). The submissions process has now closed.
In November 2021, the High Court of Australia will consider the application of the Convention on International Interests in Mobile Equipment done at Cape Town on 16 November 2001 (the Convention) in Australia in light of facts arising out of the administration of the Virgin Australia group.
The government is planning to make significant changes to the UK’s pensions notifiable events regime. The changes are designed to ensure the Pensions Regulator is given advanced notice of material corporate transactions and financing arrangements which may impact a defined benefit (DB) pension scheme.
The Corporate Insolvency and Governance Act 2020 (Coronavirus) (Amendment of Schedule 10 Regulations 2021) (the “Regulations”) will modify CIGA by extending certain restrictions on the use of winding up petitions, albeit on a more limited basis, in line with the tapering of government support measures introduced to combat the economic impact of COVID-19.
The High Court has ruled that a claim for a declaration regarding a borrower’s obligations to provide information under a facility agreement was not a claim which itself derived from borrower’s French insolvency proceedings for the purposes of Article 6(1) of the Recast European Insolvency Regulation (EU) 2015/848 (the “Recast Insolvency Regulation”).