An important decision[1] has been handed down by the High Court of Australia which relates to the order of payment of statutorily preferred debts out of trust property held by an insolvent corporate trustee.
An insight into the key issues and challenges facing global infrastructure projects, and a look at possible solutions and mitigations.
In brief
Vesting orders have become one of the most powerful tools in an insolvency professional’s toolkit, providing a purchaser with the comfort that the encumbrances contributing to the debtor’s financial difficulties cannot follow to the new owner. In light of their importance, Canadian insolvency and banking professionals were understandably anxious when the Ontario Court of Appeal (the “OCA” or the “Court”) recently asked for submissions on whether receivership vesting orders can extinguish third party interests in land in the nature of a Gross Overriding Royalty (a “GOR”).1
In an April 30, 2019 endorsement accompanying a receivership order made in the matter of Royal Bank of Canada and D.M. Robichaud Associates Ltd. (“D.M. Robichaud”), Justice Hainey of the Ontario Superior Court of Justice, Commercial List (the “Court”) held that the receiver’s charge and the receiver’s borrowings charge should have priority over deemed trusts under provincial construction legislation.1
Numerous energy-intensive companies having production facilities in Germany benefit from energy regulatory opportunities to reduce their electricity costs. The economic benefits of using these opportunities can be significant and quickly amount to several million euros a year. In the context of a number of recent transactions and restructurings relating to energy-intensive companies, we have analysed how the planned transaction/restructuring would affect existing energy regulatory benefits.
Directive 2019/1023 of 20 June 2019 on preventive restructuring frameworks, on discharge of debt and disqualifications, and on measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt, and amending Directive (EU) 2017/1132 ("Directive on restructuring and insolvency")
The EU Directive on restructuring and insolvency was published in the OJEU on Wednesday. Members states have until 17 July 2020 to implement it, and this includes the UK as it stands: the UK has much – but not all – of it already. The UK Government has its own plans for reforming insolvency law of course, including to re-introduce Crown Preference. It is mostly about creating a rescue framework.
A key part of the international scheme landscape
The use of creditors' schemes of arrangement is on the rise in Australia (as we discussed in our previous article - Update on Creditors Schemes of Arrangement in Australia). Along the way the Australian courts have made valuable contributions to international scheme jurisprudence. In this article we look at some of these contributions and then explore how Australian law might be further developed to remain a leading jurisdiction for creditors' schemes.
Navigating the road between regulatory compliance and business rescue
When dealing with a goods vehicle operator in an insolvency context:
Navigating the road between regulatory compliance and business rescue
When dealing with a goods vehicle operator in an insolvency context: