In Sarjanda Ltd (in liquidation) v Aluminium Eco Solutions Ltd and another [2021] EWHC 210 (Ch), an application to rescind a winding up order was refused where the application had been made over two years outside of the five-day time limit. That level of delay, allegedly caused by the company negotiating payment of its debts, was not a good enough reason for the breach of the time limit.
Practitioners are likely to be familiar with the provisions of The Corporate Insolvency and Governance Act 2020 (“CIGA 2020”) which introduced new permanent measures to complement the insolvency regime as well as a number of temporary measures to support business dealing with the effects of the COVID-19 pandemic.
In 2016, the High Court determined that a person may propose to do something without having a settled intention to do it and dismissed an application for an order removing a fourth notice of intention from the court file. At the time the fourth notice was filed, the director only intended to appoint administrators if a CVA proposal was rejected by creditors.
This article looks at how to deal with bankrupt Claimants and the effect that their bankruptcy has on both pre and post litigated claims, where the Credit Hire Organisations (CHOs) may continue to pursue the claim. We have focused on the law surrounding bankruptcy including what types of claim remain vested in a Claimant as well as how to deal with such a claim and issues that may arise.
Trilogy Management Limited v White Willow (Trustees) Limited and Others, 13 May 2021
Fallout from the global pandemic continues to throw light on the responsibilities of directors in times of financial distress. This briefing examines those duties in greater detail, particularly in relation to Guernsey’s company law.
Decisions, decisions
Directors owe duties to the companies they serve and ordinarily discharge those duties with reference to the interests of the companies’ members as a whole.
This article deals with the effect on claims, both pre-litigation and post, which are driven by Credit Hire Organisations (CHOs) who are insolvent or begin an insolvency process. We have focused on practical considerations to identify such claims as well as what you will need to bear in mind when handling credit hire claims where the CHO is insolvent.
Background
There are three main strands: -
Landlords have become used to the concept of the retail CVA over the past few years, but the new post COVID-19 breed of CVAs has been pushing the boundaries as never before. Further, a new restructuring option – described by some as a “CVA on steroids” – is now available to tenants courtesy of the recently enacted Corporate Insolvency and Governance Act: the s26A Restructuring Plan. Restructuring Plans enable companies, with the sanction of the Court, to impose new terms on creditors even in circumstances where not all classes of creditor have approved the plan.
The economic uncertainty for companies caused by the Covid-19 pandemic has placed a heavy burden on directors. That burden of responsibility is set to become even heavier as the temporary measures introduced in 2020 to support companies during the pandemic come to an end. Small and medium sized enterprises (“SMEs”) and those businesses operating in the travel, hospitality, leisure and manufacturing industries have been impacted in particular.
In its recent decision in Net International Property Limited v Erez, the Eastern Caribbean Court of Appeal considered whether the BVI Courts had jurisdiction at common law to recognize an insolvency office-holder appointed in the courts of Israel, and whether and to what extent the BVI Courts could grant assistance to that office-holder at common law.