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Third Party (Rights Against Insurers) Act 2010

The Third Party (Rights Against Insurers) Act 2010 (the “2010 Act”) finally comes into force on 1 August 2016.

The 2010 Act makes it easier for a third party to bring a claim against an insurer when the insured party has become insolvent. The 2010 Act will replace the Third Parties (Rights Against Insurers) Act 1930 (the “1930 Act”) and is designed to extend and improve the rights of third party claimants.

United Kingdom, Insolvency & Restructuring, Insurance, K&L Gates LLP, Arbitration award, Misrepresentation, Warranty, Insurance Act 2015 (UK)
Excess Policies at Issue Deemed Not to Attach Absent Actual Payment of the Amount of Underlying Limits by Either the Insured or its Underlying Insurers

Policyholders contemplating insurance coverage settlements with low-level insurers should use caution to preserve their ability to access higher-level excess policies. Excess insurers are increasingly disputing that underlying policies are properly exhausted where policyholders elect to settle with underlying insurers for less than full limits. The issue can be further complicated if the policyholder seeks protection under the bankruptcy laws against long-tail liabilities, as a recent case illustrates.

USA, Insolvency & Restructuring, Insurance, Litigation, K&L Gates LLP, Bankruptcy, Federal Reporter, Liability (financial accounting), Second Circuit, United States bankruptcy court, US District Court for the Southern District of New York
Malaysia’s New Insolvency Regime

Earlier this year, both the lower and upper houses of Malaysia’s parliament, passed the Companies Bill 2015 (“theBill”) which will harmonise Malaysia's insolvency laws and bring them more in line with modern international standards. Once the Bill comes into effect (it is currently awaiting Royal Assent), it will replace Malaysia’s existing Companies Act 1965.

Malaysia, Company & Commercial, Insolvency & Restructuring, Litigation, K&L Gates LLP, Shareholder, Landlord, Board of directors, Liquidation, Moratorium, Secured creditor, Debt restructuring
BHS directors liable for wrongful trading and misfeasance

The High Court has found two former directors of the BHS group of companies liable for wrongful trading and misfeasance under the Insolvency Act 1986 (the Act). Relief against the directors has been ordered in the amount of £18m, with further rulings still to come.

United Kingdom, Insolvency & Restructuring, Litigation, Macfarlanes LLP, Corporate governance, Companies Act 2006 (UK), UK Supreme Court
Lessons from Nortel: what do the recent allocation decisions mean?

Around 33,000 UK-based pensioners of the Nortel group  look set to receive a greater share of the group’s $7bn worldwide assets, following a joint allocation hearing in the US and Canadian courts. This should mitigate earlier difficulties encountered in trying to use the Pensions Regulator’s anti- avoidance powers to recover monies from non-UK companies.

The decision may also have wider implications for unsecured lenders to a company which is part of a multi-jurisdictional group headquartered in the US or Canada.

WHAT WAS THE BACKGROUND TO THIS?

Canada, United Kingdom, USA, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Macfarlanes LLP, The Pensions Regulator (UK)