Introduction

The Coronavirus (Recovery and Reform) Scotland Act was passed by the Scottish Government on 28 June 2022 and enacted on 10 August 2022 (the "Act"). It makes two key changes to insolvency and diligence in Scotland.

Bankruptcy floor limit

In Scotland claims (e.g. the right to payment) are currently transferred by assignation followed by intimation (i.e. notice) of the transfer to the party which is under an obligation to perform the obligation (e.g. making a payment).

When a private company wishes to cease its operation in Hong Kong, this is the most common question we are asked: should we deregister the entity or liquidate the entity?

Deregistration

The deregistration procedure is applicable to most companies (subject to certain exceptions) which have not been in operation during the preceding three months.

As regular readers of our blogs will know, a group claims procedure came into force in Scotland on 31 July 2020.

On Friday, 29 July the Minister for Enterprise, Trade and Employment signed into law the European Union (Preventive Restructuring) Regulations 2022 (the Regulations).

The recent crash in cryptocurrency prices has erased nearly $2 trillion in market value and forced three large firms into bankruptcy proceedings in the United States Bankruptcy Court for the Southern District of New York (SDNY): Three Arrows Capital, Voyager Digital, and Celsius Network.

The cryptocurrency hedge fund Three Arrows Capital was the first domino to fall. It suffered heavy losses on trades connected to the collapse of the Terra algorithmic stablecoin, which in turn triggered margin calls and subsequent defaults on over $1 billion in loans.

Do landlords do get a good deal in CVAs? It would seem they do (if you don't read the small print…)

A few weeks ago we blogged that we were expecting RSM's research report, which was commissioned by the Insolvency Service, into the impact of CVAs on the landlords. The specific question in the research paper was: "are landlords equitably treated, compared to other creditors in large business CVAs?".

This series looks at the enforcement options available to creditors to recover sums due by a debtor in Scotland. In the previous edition we looked at Inhibition which is similar to a Charging Order in England. A reminder can be read here. In this edition, we now turn to look at how Earnings Arrestment operates in Scotland.

If you have fraudulently obtained Covid-19 financial support, such as a Bounce Back Loan, you must be pretty worried by recent headlines that show company directors being disqualified, fined and jailed.