The High Court considered whether a limitation period could prevent the presentation of a winding up petition based on a Lebanese judgment debt which was not registered as an English judgment.
Background
The creditor presented a winding up petition based on a judgment debt of $776,907.51 obtained in a Lebanese court in 2010. The debtor applied to restrain presentation of the petition on grounds that the judgment had not been registered nor recognised by the English Courts and the claim was time-barred.
Recognition
According to the German Federal Court of Justice (the Court), a “related party” (nahestehende Person) within the meaning of German insolvency law includes in the case of a legal entity, an indirect shareholder, provided that it holds more than 25% of the shares. Here, the Court will assume that the legal entity has advance knowledge of the financial situation of its subsidiary.
Background
The English High Court has considered, on appeal, whether a foreign judgment constitutes a "debt" for the purposes of a bankruptcy petition.
Background
A bankruptcy petition served by Servis-Terminal LLC (ST) was based on a Russian court judgment obtained against Drelle, a former director of ST. The judgment had been upheld following appeals to superior courts in Russia.
There was no evidence that Drelle would be able to pay the judgment debt which was considerably more than the bankruptcy threshold.
Appeal
Following the launch of its public consultation in October 2023, the UK Jurisdiction Taskforce has now published its latest Legal Statement on the treatment of Digital Assets under English insolvency law.
Key conclusions
The Dutch Minister of Justice has recently proposed a legislative bill that drastically reduces court fees in WHOA proceedings.
Background
The High court has recently considered whether permission should be given retrospectively to lift an administration moratorium to allow a counterclaim to proceed.
Background
The counterclaim had been brought by WWTAI against CargoLogicAir Ltd (in administration) (CLA) without the consent of the administrators or the Court. CLA contended that the counterclaim was issued in breach of the statutory administration moratorium and should be struck out.
Solely to set off
Plusieurs décisions judiciaires notables et mises à jour législatives importantes pour les prêteurs commerciaux, les entreprises et les professionnels de l’insolvabilité ont marqué l’année 2023. Le présent bulletin résume les principaux développements survenus en 2023 et met en lumière les points saillants à connaître en 2024.
1. Régime de priorité
En 2023, plusieurs affaires et mises à jour législatives ont soulevé des questions importantes concernant le régime de priorité dans le cadre des procédures d’insolvabilité.
Several significant judicial decisions and legislative updates occurred in 2023 that are relevant to commercial lenders, businesses and restructuring professionals. This bulletin summarizes the key developments of 2023 and highlights areas of significance to be aware of in 2024.
1. Priority Scheme
In 2023, several cases and legislative updates raised important questions regarding the priority scheme in insolvency proceedings.
Environmental Priorities
An insolvency administrator may lose their right to restitution arising from an insolvency avoidance if they are prevented from exercising the right in good faith by their conduct in the context of the conclusion of a redemption agreement, by which the creditor (and opposing party) waives rights to separate satisfaction.
Decision
A special administration regime for Payment and Electronic Money Institutions (PIs and EMIs) was established in The Payment and Electronic Money Institution Insolvency Regulations 2021 (the Regulations).