You must have been in isolation if you haven’t heard or read about the Supreme Court’s decision in Bresco v Lonsdale. It has been hailed by some as opening the floodgates to adjudications by insolvent companies. But as a series of recent judgments show, there remain a number of obstacles that will need to be overcome by insolvent entities seeking to enforce an adjudication award.

The background

The Court of Appeal has handed down judgment in a case concerning the Core VCT PLC companies (In Members Voluntary Liquidation) [2020] EWCA Civ 1207. The case concerns an order made to restore three dissolved companies after they went through a solvent liquidation process (ie no creditors still owed money), putting them back into solvent liquidation and appointing liquidators to investigate not only the affairs of the company but also the conduct of the ex-liquidators. The restoration application was made without notice to the ex-liquidators or members.

The Corporate Insolvency and Governance Act 2020 makes the most significant changes to UK insolvency law in a generation. The Act introduces three permanent measures: a new free standing moratorium, a new restructuring plan process (largely modelled on schemes of arrangement but with the addition of a cross-class cram-down), and restrictions on termination of contracts for the supply of goods and services. The moratorium and the restructuring plan are of particular significance to secured lenders, and this note addresses some of the most frequently asked questions by the ABL community.

The Companies (Miscellaneous Provisions) (COVID-19) Act 2020 (the Act) was passed by the Dáil on 30 July 2020 and, once commenced, will make temporary amendments to, inter alia, the Companies Act 2014 (the Companies Act) in order to address certain operational challenges that COVID-19 has presented to Irish companies.

Introduction

With grimly apposite timing, in June, the Supreme Court gave its decision in Bresco Electrical Services Ltd (in Liquidation) v Michael J Lonsdale (Electrical) Ltd and turned on its head the construction industry’s understanding of an insolvent company’s right to pursue an adjudication. It will fundamentally affect construction insolvencies.

One of the most powerful tools for insolvency practitioners when investigating the affairs of an insolvent company where wrongdoing is suspected is section 236 of the Insolvency Act 1986 (“IA 1986”). This confers power on English courts to order certain categories of parties to produce documents and an account of dealings relating to companies being wound up in the UK.

Preventive Restructuring

Intro

The UK insolvency regime has changed. Our earlier alert set out a brief overview of the changes. This is note provides more detail and flags some practical steps that the suppliers of goods and services may wish to consider.

In a nutshell

On 19 June 2020, the Ukrainian Parliament adopted law (draft law No. 2284) aimed at introducing sweeping new changes to regulation of financial instruments (the Law). The Law has also paved the way for a wide range of new financial instruments such as derivatives, green bonds, loan notes, and other structured finance products.

On 19 June 2020, the Ukrainian Parliament adopted law (draft law No. 2284) aimed at introducing sweeping new changes to regulation of financial instruments (the Law). The Law has also paved the way for a wide range of new financial instruments such as derivatives, green bonds, loan notes, and other structured finance products.