DoCA's: What Claims can be Released?
PK Riddell Investments Pty Ltd v Upwards Up And Gone Pty Ltd [2024] VSC 159 ("Riddell Investments")
The UK Jurisdiction Taskforce (UKJT) has published its "Legal Statement on Digital Assets and English Insolvency Law." The Statement confirms the view that digital assets are a form of personal property to which insolvency laws apply. It also affirms that the current approach taken by the English courts to determine whether they are the appropriate venue for the commencement of insolvency proceedings works for a company dealing in digital assets.
1. Introducción
En la edición de este mes de abril destacamos la ya famosa sentencia de la Audiencia Provincial de Valencia del 27 de marzo que declara la ineficacia total del plan de restructuración de Das Photonic, S.L.
Sobre esta sentencia se ha hablado mucho porque es la primera declaración de ineficacia de un plan de restructuración.
La sentencia tiene casi 150 páginas pero reseñamos abajo los puntos clave de su contenido que hemos extractado porque creemos pueden servir de lección para casos futuros.
Communicating with Scheme Creditors: Beware of Zealous Advocacy
A-Cap Energy Limited [2023] FCA 1356 ("A-Cap") and Symbio Holdings Limited [2024] FCA 40 ("Symbio")
The main communication with scheme creditors is the explanatory statement approved at the first court hearing.
However, there can be other communications which are proposed to be sent to creditors.
In the case of other communications which are known at the time of the first hearing, they can include:
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).
The Hungarian Supreme Court has ruled that in a lawsuit initiated by an insolvent debtor, a creditor’s claim arising after the commencement date of the liquidation cannot be enforced as a set-off claim against the debtor.
Background
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).
On 4 March 2024, the High Court approved the amended restructuring plan (the Plan) of Project Lietzenburger Straße Holdco S.à.r.L (the Company) a Luxembourg incorporated company part of the German Aggregate Holdings Group, despite refusing to sanction its original plan.
In 2021, the FCA published its Guidance for IPs on how to approach regulated firms. Since then, there have been changes in the legal framework affecting firm failure, changes in the regulatory framework and changes in the UK economic climate.
The FCA is consulting on amendments to reflect these changes including: