While not an exhaustive list, here is a reminder of some measures you might want to think about to help mitigate the effects of insolvency on construction projects. As with all these measures (and with insolvency generally) there are a number of complicated issues to be considered, so do seek advice as necessary.

Performance security

An insolvent enterprise incorporated in Mainland China (“PRC”) or its creditors (“Applicant”) may institute a bankruptcy proceeding against the insolvent enterprise under the PRC Enterprise Bankruptcy Law (“Bankruptcy Law”) by the filing of a bankruptcy petition. There have long been complaints by industry practitioners that PRC courts are reluctant to register bankruptcy petitions.

任何在中国内地（“”）注册成立的企业，如不能清偿到期债务，并且资产不足以清偿全部债务或者明显缺乏清偿能力的，可由该企业或其债权人（“”）提交破产申请，继而根据《中华人民共和国企业破产法》（“《破产法》”）对该企业发起破产法律程序。但是，长期以来，备受业内人士诟病的是，中国法院迟迟未对破产申请实施立案登记制度。在此背景下，最高人民法院（“”）于2016年7月颁布指导通知[1]（“《2016年最高院通知》”），旨在简化和规范登记破产案件的立案受理工作。

最高院通知：优化立案程序

The facts

Through corporate acquisitions and asset transfers, BAT Industries plc (“BAT”) (a Claimant in the proceedings) became liable to contribute to the clean-up of the sediment of the Lower Fox River in Wisconsin, U.S.A. Arjo Wiggins Appleton Limited (“AWA”), a wholly owned subsidiary of Sequana SA (“Sequana”) (a Defendant in proceedings), became liable to indemnify BAT for part of any monies paid out. Provision was duly made in AWA’s accounts to reflect a best estimate of the value of such liability.

The High Court this afternoon unanimously dismissed Clive Palmer and Ian Ferguson's challenge to the constitutional validity of section 596A of the Corporations Act.

This means that a liquidator's power to publicly examine and compel the production of documents remains intact and removes any doubt about the powers of liquidators under section 596A of the Corporations Act.

Arguments made by Clive Palmer and Ian Ferguson

Introduction

Introduction

Agriculture is a long-term business and most people within the sector are proud of its reputation for straight talking and fair dealing. Debt issues can arise at any stage, but there are particular cyclical problems at the moment which mean that there is more debt-chasing activity, as cashflow pressures intensify.

Angel Group Ltd and others concerned a group of companies in Administration where the director asserted that the companies’ bank had “conspired to artificially distress the business”

The facts

In the case of Angel Group Ltd and others [2015] EWHC 3624, Administrators from KPMG were appointed to Angel Group Limited and to seven of its subsidiaries. The Bank of Scotland was the only secured creditor, and was owed a residual balance of £20 million.

The High Court has determined the circumstances in which sums drawn down under a self-investment personal pension scheme could be subject to an income payments order.

The background