For those who missed it the Insolvency Service published an excellent research report at the end of June which focuses on the treatment of landlords in company voluntary arrangements (CVAs). This was against the backdrop of a large number of "landlord" CVAs in recent years – particularly in the retail and casual dining sectors – where landlords have often complained that they have been unfairly treated compared to other compromised creditors. The report concludes that landlords are, broadly speaking, equitably treated compared to other classes of unsecured creditors.

The Insolvency Service has published a consultation on the implementation of two UNCITRAL "model laws" relating to insolvency: the Model Law on Recognition and Enforcement of Insolvency-Related Judgments (MLIJ), and the Model Law on Enterprise Group Insolvency (MLEG). The UK has already enacted legislation based on the Model Law on Cross-Border Insolvency, in the form of the Cross-Border Insolvency Regulations 2006 (CBIR).

In a ruling issued on 3 March 2022 (IX ZR 78/20) the German Federal Court (BGH) has again raised the requirements for proving that a debtor, when making a payment, intended to disadvantage their creditors.

Background

The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020, commonly referred to as the "Breathing Space Regulations", came into force on 4 May 2021. The Regulations provide eligible individuals with problem debt a period of protection from their creditors known as a "breathing space moratorium".

In Rushbrooke UK Ltd (the Company) v Designs Concept Ltd (Designs) [2022] EWHC 1110 (Ch), the Court struck out injunction proceedings to restrain the presentation of a winding up petition as the instructing director did not have Company authority.

Background

While the Czech government has not yet enacted the June 2019 EU Directive on restructuring and insolvency, it has proposed another debt relief measure, the Milostivé léto or 'Debt Jubilee'. This will give debtors the opportunity to discharge debts owed to the Czech state.

Background

The measure will provide relief for debts where interest repayments substantially exceed the principal amount. The measure follows on from the previous 'Debt Jubilee' between 28 October 2021 and 28 January 2022 when 42,000 debt enforcement proceedings were cancelled.

The new Slovakian preventive restructuring framework aims to provide companies with a viable toolkit to deal with financial distress at an early stage and to counter the fact that the majority of Slovak companies enter an insolvency process having been insolvent for more than a year.

Main characteristics

The court sanctioned one of two potential schemes of arrangement for Amigo Loans Ltd (Amigo) and approved a plan that provided for two possible outcomes.

Background

Amigo provided guarantor loans to customers with poor credit scores. Amigo owed customers and the Financial Ombudsman Service £375 million for customer complaints and was insolvent.

What effect will government proposals have on insurers, policyholders and other stakeholders?

The Insolvency Service has published an interim report which evaluates three permanent changes to the insolvency regime as introduced by The Corporate Insolvency and Governance Act 2020 (CIGA): restructuring plans; the standalone moratorium and the restriction on contractual termination rights (so-called ipso facto clauses). The takeaway messages are as follows: