Deciding the parameters of directors' personal liability for actions, or omissions, when a company continues to trade while it is or near insolvent requires a balance to be struck between allowing directors latitude to try to rescue the company and protecting the company's creditors.

From 1 September 2023, judicial reorganisation proceedings by way of an amicable agreement as well as those with a view to a collective plan will both have a private variant. This will help avoid negative publicity and allowing the debtor to prepare its restructuring in all quietness.

As a reminder, a company confronted with financial difficulties threatening its continuity may file for judicial reorganisation proceedings to get protection against enforcement actions and bankruptcy filings by its creditors.

From 1 September 2023, the restructuring expert will make their first appearance in Belgian restructuring law. This new court-appointed practitioner can be assigned a variety of tasks, ranging from assisting the debtor in negotiations with creditors to supervising the restructuring process and compliance with creditor information obligations.

From 1 September 2023, Belgian insolvency law will provide a new discrete preparatory procedure before bankruptcy. It’s aimed at facilitating a value-maximising transfer of assets or activities as a going concern in the interest of creditors and employees.

From 1 September 2023, the Belgian reorganisation procedure by way of a collective plan will be radically changed for large companies. It introduces the obligation to group creditors (and shareholders) into “classes” for the purpose of voting on a restructuring plan.

The Belgian Act of 7 June 2023 transposing EU Restructuring Directive (2019/1023) introduces new rules specifically aimed at large companies filing for a judicial reorganisation through a collective plan (similar to the US Chapter 11 or UK Restructuring Plan procedure).

Substitution first, standing later- a decision of Chief ICC Judge Briggs regarding supporting creditors and substituting as petitioner

Key Takeaways

In welcome news for insolvency practitioners, the Supreme Court has limited the circumstances in which a dissatisfied bankrupt will have standing to challenge a trustee in bankruptcy's decisions or actions under section 303(1) of the Insolvency Act 1986 (Act), to those where there is likely to be a surplus in the bankruptcy estate (subject to only very limited exceptions). The Supreme Court acknowledged that, while this decision is about bankruptcy, the reasoning will also apply to challenges to liquidators' decisions under section 168(5) of the Act.

In welcome news for insolvency practitioners, the Supreme Court has limited the circumstances in which a dissatisfied bankrupt will have standing to challenge a trustee in bankruptcy's decisions or actions under section 303(1) of the Insolvency Act 1986 (Act), to those where there is likely to be a surplus in the bankruptcy estate (subject to only very limited exceptions). The Supreme Court acknowledged that, while this decision is about bankruptcy, the reasoning will also apply to challenges to liquidators' decisions under section 168(5) of the Act.

Litigation between Mr and Mrs Brake, Axnoller Events Ltd and various other parties has been the subject of a significant number of judgments covering a wide range of legal issues. The underlying facts are convoluted but can be briefly summarised for the purpose of the recent decision of the Supreme Court in Brake & Anor v The Chedington Court Estate Ltd [2023] UKSC 29 as follows.

The application before HHJ Paul Matthews, sitting as Judge of the High Court, in Patley Wood Farm LLP & Ors v Kristina Kicks & Anor [2022] EWHC 2973 (Ch) was essentially a challenge to the decision of trustees in bankruptcy not to intervene in an appeal in possession proceedings between the bankrupts and a Chedington, a creditor, following the purported sale of the bankrupts’ interest in a property known as West Axnoller Cottage.