Introduction
General obligation for creditors to file their claims
Nature of claims admissible in bankruptcy
Valuation of declared contingent claims
King & Ors v Kings Solutions Group Ltd & Ors [2022] EWHC 1099 (Ch)
Background
This appeal arose in the context of long-running and complex dispute between the shareholders of Kings Solutions Group Limited (‘the Company’).
New requirements brought in during the Covid-19 pandemic have added to the potential procedural pitfalls facing creditors seeking a winding up order in recent months. They have also led to quite a lot of adjourned hearings and delays.
Dispute Resolution analysis: Deputy ICCJ Schaffer has dismissed an application brought by the Respondents to a claim brought by the Joint Liquidators of BHS Group Ltd for wrongful trading. The failure to plead the relevant quantum of the claim was not a deficiency which merited strike-out.
Re BHS Group Ltd [2021] EWHC 3501 (Ch)
What are the practical implications of this case?
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:
We are (or were!) emerging from nearly two years of restrictions caused by the Covid-19 pandemic which forced people to stay at home and businesses to close causing shock waves throughout the economy. The government put in place the package of emergency measures and support which we are now all too familiar with. However, the question always lingered, what next? What about when the money runs out?
The Act of 17 December 2021 has extended the transitional measures provided for by the Act of 23 September 2020 until 31 December 2022. In practice, Luxembourg-based companies can hold either virtual board and shareholder meetings, even if their articles of association provide otherwise, or physical meetings if they respect the applicable sanitary conditions.
This appeal concerned (inter alia) whether an application for an order for sale made under s.335A of the Insolvency Act 1986 (‘IA 1986’) should be made by an application notice issued under the Insolvency Rules 2016 (‘IR 2016) or by a Part 8 Claim Form issued under the Civil Procedure Rules (‘CPR’).
Factual Background
Introduction
In Re Bronia, ICC Judge Burton had to consider whether a director could retrospectively re-characterise a director’s loan as ‘drawings’ in order to release the director from liability to the company. ICC Judge Burton concluded that such an approach was impermissible.
Facts
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: