In Sian Participation Corporation (In Liquidation) v Halimeda International Ltd [2024] UKPC 16, the Privy Council considered an appeal from the Court of Appeal of the Eastern Caribbean Supreme Court (BVI) as to whether a company should be wound up where the debt on which the winding up application is based is subject to an arbitration agreement and is said to be disputed and/or subject to a cross-claim.

Although an insolvency case, the judgment of His Honour Judge Paul Matthews, sitting as a High Court Judge, in Broom v Aguilar [2024] EWHC 1764 (Ch) deals with a service issue of more general importance.

The judgment of Nicholas Thompsell, sitting as a Deputy High Court Judge, in Hellard & Ors v OJSC Rossiysky Kredit Bank & Ors [2024] EWHC 1783 (Ch) deals with three questions raised by an application of the trustees in bankruptcy of Anatoly Leonidovich Motylev for directions under s 303(2) Insolvency Act 1986:

(1) Should the trustees treat certain Russian bank creditors as being caught by the sanctions imposed under the Russia (Sanctions) (EU Exit) Regulations 2019?

The collapse of UK retailer British Home Stores ("BHS") in 2016 remains one of the most high-profile corporate insolvencies of recent times. It went from being a household name across the UK, with over 11,000 employees, to having reported debts of £1.3 billion, including a pension deficit of nearly £600 million. The group's demise saw the closure of some 164 stores nationwide and significant job losses.

In December 2012, Halimeda International Ltd lent $140m to Sian Participation Corp. The loan agreement provided that any claim, dispute or difference of whatever nature arising under, out of or in connection with the loan should be referred to arbitration. In September 2020, in proceedings akin to a winding up petition, Halimeda applied to have liquidators appointed over Sian under the BVI Insolvency Act 2003. Wallbank J held that Sian had failed to show that the debt was disputed on genuine and substantial grounds and ordered that the company be put into liquidation.

Restructuring Plans: should an opposing creditor be granted security for costs? Might that open the floodgates where companies are by definition “distressed,” or was this particular Plan more akin to ordinary adversarial litigation? Read our summary below.

Seven years after the British Home Stores Group Limited, a well known high street retailer, and its operating subsidiaries entered liquidation, the High Court has found two former directors liable for wrongful trading and misfeasance.

Background

Welcome to the 2024 edition of "From Red to Black", our annual review of significant developments and topical issues in the Australian restructuring and insolvency market.

Regulator intervention and government stimulus packages in response to market shocks often mask underlying systemic distress and disrupt economic cycles. With companies now largely weaned off COVID-19 support packages, insolvencies have significantly increased.

By following certain steps and focusing on relevant courses of action, directors of startups can leverage the Safe Harbour provisions to increase their chances of navigating financial difficulties and achieving a better outcome for their company.

The Alita matter serves as a good illustration that if you intend to seek leave under section 444GA(1)(b) you should act swiftly and with regard to the potential regulatory risk.