Summary
The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020, which will come into force on 4 May 2021, will provide individuals with the opportunity to obtain legal protection from creditors in the form of either a breathing space moratorium or a mental health crisis moratorium. Given the economic impact of the Covid-19 pandemic, there may be a significant number of individuals seeking to obtain a moratorium to pause action against them to recover debts.
Protecting debtors
These case summaries first appeared in LexisNexis’ Insolvency Case Alerter. They represent some of the more interesting insolvency decisions to have been published recently.
This summary covers:
The interesting times of the last 14 months were preceded by the interesting times of the financial crisis of 2008/2009. The reverberations of that financial crisis had a profound effect upon governments’ presumptions as to the financial stability of economies generally but also the financial stability of sectors such as financial services.
The temporary restrictions on winding-up petitions brought in under the Corporate Insolvency and Governance Act 2020 (“CIGA”) are wider than originally envisaged when first announced by the government in April 2020 and have now been extended until 30 June 2021.
These case summaries first appeared in LexisNexis’ Insolvency Case Alerter. They represent some of the more interesting insolvency decisions to have been published recently.
This summary covers:
At the end of last year judgment was handed down by Pat Treacy J in a matter notable for the unusual attitudes of a director towards the company’s director’s loan account. By the time the company entered into administration, the loan account was overdrawn to the tune of £1.35m, with the director having withdrawn funds to (amongst other things) finance the purchase and maintenance of a personal yacht.
A recent decision of the Court has confirmed that the recipient of funds from an individual who is subject to a bankruptcy petition can be construed as having provided value where that value is given to a third party (and not to the bankrupt personally).
Roger Elford and Jessica Williams in the Corporate Restructuring and Insolvency team at Charles Russell Speechlys LLP acted for a successful Respondent, Howard de Walden Estates Limited, in these proceedings.
The Background
While the dust settles, and lawyers on both sides of The Channel scrutinise the UK-EU trade deal and consider the many legal issues not covered by the accord, The Netherlands is taking steps to assert itself as the most attractive restructuring market in Europe.
In light of a number of recent High Court decisions, Andy Creer considers the approach of the Court when considering an application for a speedy trial.