As Covid-19 restrictions in the UK gradually come to an end, the need for distressed tenants to be able to reorganise their liabilities to efficiently deal with the pandemic’s impact upon their balance sheets is likely to result in a number looking to use restructuring plans and CVAs.
Thankfully, a trio of significant recent cases, New Look1, Virgin Active2 and Regis3, have provided helpful and timely guidance regarding the use of such processes.
When finances become distressed, creditors examine all avenues to recover their debt which can result in any intercreditor agreements being thrown into the spotlight. The recent judgment of Re Arboretum Devon is another helpful reminder to lenders entering into an intercreditor agreement (ICA) that these should be drafted with the worst-case scenario in mind and using the clearest language in order to avoid disputes arising at the time of enforcement.
Last month, we discussed practical tips for dealing with contractor insolvency as part of our ongoing construction webinar series.
Our colleague, Doug Wass, has already shared three key points to be aware of when a contractor becomes insolvent. In this article we discuss, in more detail, the practical points clients and those administering building contracts on their behalf should consider when contractor insolvency is suspected and occurs.
Three weeks spent entirely at home seemed daunting at the time (little did we know…) and the prospect of wholesale business closures soon gave rise to serious concerns about the potential impact which those closures would have on the wider economy.
Selección de las principales resoluciones en materia de reestructuraciones e insolvencias.
Suspensión de la junta general extraordinaria hasta la designación y aceptación del cargo por la administración concursal
Auto del Juzgado de lo Mercantil núm. 3 de Sevilla de 26 de febrero de 2021 (asunto “Abengoa”)
Selection of the main restructuring and insolvency judgments.
Suspension of special shareholders’ meeting until insolvency receiver’s appointment and acceptance of that appointment
Decision by Seville Commercial Court No 3 on February 26, 2021 (“Abengoa” case)
On January 22, 2021 Madrid's commercial court judges approved a set of agreed procedures for handling insolvency proceedings in which liquidation is requested together with the insolvency order, as well as a number of criteria for transfers of productive units in these and other insolvency processes.
El 22 de enero de 2021, los jueces mercantiles de Madrid aprobaron un conjunto de acuerdos para la tramitación de procedimientos de insolvencia en los que se solicita la liquidación junto a la declaración de concurso, así como una serie de criterios para la enajenación de unidades productivas en estos y otros procesos concursales.
El impacto sostenido en la actividad económica que está teniendo la pandemia COVID-19 ha llevado al Gobierno, por un lado, a adoptar una serie de medidas destinadas a reforzar la liquidez y solvencia de las empresas y, por otro, a extender una vez más algunas de las medidas en el ámbito de la Administración de Justicia que se habían adoptado en el marco del Real Decreto-ley 16/2020, de 28 de abril, posteriormente confirmadas en la Ley 3/2020, de 18 de septiembre, así como en el Real Decreto-Ley 34/2020, de 17 de noviembre.
With an increased number of businesses experiencing financial difficulties in the current economic climate, lender-led debt restructurings are becoming more prevalent. Such restructurings are commonly achieved by the lender releasing, capitalising or amending its debt, each of which will have tax consequences for the borrower group.
This note sets out a brief summary of some of the key UK tax points to be aware of, and pitfalls to avoid, when undertaking these debt restructurings.
Debt waivers