In a significant recent judgment, the ADGM Court has clarified that it has jurisdiction to hear an action for fraudulent trading against the former directors of an onshore UAE company.
By way of background, NMC Healthcare LTD (NMC), and its various subsidiaries, were incorporated in onshore UAE. On 17 September 2020, NMC was redomiciled as an ADGM company. Shortly thereafter, on 27 September 2020, NMC was put into administration pursuant to the ADGM Insolvency Regulations 2015 and joint administrators (the Joint Administrators) appointed.
Since the pandemic, during which insolvency rates were low due to Government measures, there has been a considerable rise in insolvencies in the UK and many other jurisdictions. High interest rates have significantly increased the cost of borrowing and many companies are saddled with mountains of debt that was taken out in better times and which are now difficult to repay. In addition, high inflation and energy costs, lower consumer confidence and volatile supply chains have all contributed to making the last few years very difficult for businesses.
The adage ‘there is no such thing as a free lunch’ rings true for the 831 company directors disqualified in 2023/24 for abusing the Covid financial support scheme.
Restructuring Advisory Partner David Hudson considers the outlook for corporates
There’s no denying that the latest insolvency figures make for uncomfortable reading. In 2023, there were more than 25,000 registered company insolvencies, the highest annual number since 1993 and 14% higher than 2022.
The Superior Court of Quebec rules in favor of Export Development Canada (“EDC”) and enforces a "[unequivocal]" Waiver against the surety who signed it in the context of a loan guarantee granted to the RBC.
Relevant Facts
Friday January 26, 2024
Financial Advisory Partner, Jim Davies, explores the recent developments in Restructuring Plans
Financial Advisory Partner, Jim Davies, led the relevant alternative valuation analysis for four Restructuring Plans that were sanctioned by the High Court in 2023. Here, he explores recent developments in light of the Adler Restructuring Plan being overturned.
The Kingdom introduced its first ever bankruptcy law in 2018 which has created a foundation for a business rescue culture in Saudi Arabia. Companies undergoing financial difficulties are equipped with the tools that allow them to either trade out of a difficult period or liquidate the business in a manner which does not leave creditors out of pocket. More recently, to complement the existing insolvency regime, rules of cross-border bankruptcy proceedings came into effect on 16 December 2022 (“Rules”).
Insolvency statistics for August were recently released and the number of companies entering into formal insolvency processes is the highest it has been for several years.
The economic outlook isn’t great, with the IMF predicting growth in the UK will be lowest of all the G7, off the back of pandemics, wars, energy crises, labour shortages, and borderline hyperinflation.
Restructuring Advisory Director, Luke Wilson, reflects on the manufacturing sector's economic activity.
From my experience every battle in business or life always has two sides, the one which is glaringly obvious, the fight itself – the difficulties and the alarming thoughts of, how do I find a way through – then the other side, beneath the surface, there is an abundance of opportunity for change, growth and learning. This is no different for the current state of flux that the manufacturing sector is facing.
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Restructuring Advisory Director, Luke Wilson sits down with Neil Taylor, founder and managing director of NTI, on the CPD Tap podcast to explore the latest insolvency trends.