It is fair to say that the insolvency of Carillion has sent shockwaves through the construction industry. While this may be the catalyst for change, insolvency has unfortunately been a risk which has been realised all too often. Looking at the current position, we set out the top ten issues that employers, professionals and the supply chain should consider in the event of main contractor insolvency.

FINANCIAL SERVICES AND BREXIT BRODIES BREXIT GUIDE. www.brodies.com What might Brexit mean for financial services? On 29 March 2017 the UK’s Article 50 Notice was delivered to the European Council in Brussels, triggering the formal process for the UK’s exit from the EU. Immediately following delivery of the notice, the UK Government’s Department for Exiting the European Union issued a White Paper on the Great Repeal Bill (entitled “Legislating for the UK’s withdrawal from the European Union”). The paper focuses on the legal changes that will result from the UK’s exit from the EU.

On 25 October 2017, the Accountant in Bankruptcy (AIB) published its insolvency statistics for the latest quarter, July to September 2017.

A recent Court of Session case has made clear that a Scottish court cannot wind up or make an administration order in respect of an English registered company, and the same applies to English courts and Scottish companies.

The recent case of Breyer Group plc v RBK Engineering Limited considered the use of winding up petitions in construction contracts.

An application was made by Breyer to stop RBK from continuing with a petition to wind up the company. The court decided that winding up petitions can operate as a form of commercial oppression and may not be appropriate, especially when adjudication or ordinary proceedings would be a more appropriate forum for the dispute.

The background

In Saw v Wilson, the Court of Appeal held that a second ranking floating charge would be valid and enforceable, even if at the time it was created there were no uncharged assets to which the floating charge could attach.

Facts of the case

A recent decision at Glasgow Sheriff Court has given guidance on the circumstances in which it is appropriate for a former trustee in receipt of a PPI refund to apply to be re-appointed to a sequestrated estate.

After ten years of operation the European Insolvency Regulation (Regulation (EC) No. 1346/2000) has been extensively reviewed by the European Commission, European Parliament and Council. On 20 May 2015, the European Parliament approved the result of that review: the recast Insolvency Regulation (Regulation (EU) No. 2015/848) (the “Regulation”), which applies to insolvency proceedings commencing from 26 June 2017.

A significant decision issued last week by a five judge bench of the Inner House has reversed a 40 year old decision on the meaning of 'effectually executed diligence' in a receivership.

Section 60 of the Insolvency Act 1986 provides that in a receivership, all persons who have 'effectually executed diligence' on any part of the property of the company which is subject to the charge by which the receiver is appointed have priority over the holder of the floating charge.

This article looks at the forthcoming pre-action protocol for debt claims in its current form, with an anticipated implementation date around October this year.

There might be further changes ahead, and a shift in the implementation timetable, so please watch this space for further updates.