In the recent decision in PricewaterhouseCoopers Inc. v Perpetual Energy Inc., 2021 ABCA 16 (Perpetual Energy), the Alberta Court of Appeal has reversed the Honourable Justice D.B. Nixon’s decision, striking out or summarily dismissing claims by PricewaterhouseCoopers Inc. in its capacity as trustee in bankruptcy (the Trustee) of Sequoia Resources Corp. (Perpetual/Sequoia).
2020: ENGLISH INSOLVENCY LAW REFORM
The Corporate Insolvency and Governance Act (CIGA), which came into force on 26 June 2020, introduced the most significant changes to English insolvency law in a generation. It introduced three permanent changes and implemented temporary measures to support businesses affected by the COVID-19 pandemic.
This is part three of a series focusing on current M&A trends, opportunities and challenges
The UK Government has today announced plans to introduce new legislation which will require mandatory independent scrutiny of 'pre-pack' administration sales, where connected parties, such as the insolvent company's existing directors or shareholders, are involved in the transaction.
Although the Sunbird scheme of arrangement was approved by the relevant creditors, sanction was refused by Mr. Justice Snowdon, who highlighted:
- a ‘paucity of information provided by the company as part of the scheme process’, and
- a failure to engage with creditors ‘whom the directors clearly felt were irrelevant or would be an obstacle to their plans’.
He remarked that the company’s approach 'fell a considerable distance short of what was required for a fair process'.
Despite commentators’ recent focus on the new Part 26A restructuring plan, introduced in late June by the Corporate Insolvency and Governance Act 2020, the scheme of arrangement under Part 26 of the Companies Act 2006 (“scheme”) remains a popular tool for companies to reach a compromise or arrangement with their creditors and/or its members.
I. Introduction
Complex restructurings are no stranger to colorful facts and unpredictable twists and turns. But few lead to criminal charges. Fewer still involve criminal charges against the chairman of the unsecured creditors’ committee, alleging that he abused his position to benefit himself financially.
This is the first part of a two-part series
Commercial tenant bankruptcies and COVID-19
New Look's unsecured creditors today approved a company voluntary arrangement that will amend 402 store leases to a turnover rent model, reflecting recent movements in the market towards more flexible lease obligations.
Despite opposition from many landlords, and considerable disquiet in the property industry, it is clear that tenants remain open to using the CVA process to restructure their leases, as a means to address the impact of the COVID-19 pandemic.