It is essential to establish first if participating companies are under a control relationship and of the same corporate group

How can creditors reduce the risk of a fixed charge being characterised as floating?

The determination as to whether a charge over a valuable asset is fixed or floating can be crucial to a creditor's recovery in an insolvency. To have two cases over the course of little more than a year providing detailed analysis of the nature of fixed and floating charges is indeed a treat. Are there any practical steps creditors can take to reduce the risk of a fixed charge being characterised as floating?

Fluctuating assets?

Consent of secured creditors with no remaining economic interest is not needed to extend the administration of a company

Osborne Clarke recently advised the administrators in two reported High Court cases which have confirmed that a "secured creditor" under section 248 of the Insolvency Act 1986 should be construed in the present tense, retaining the status of secured creditor only if it is still owed a debt by the company in administration.

Early indications for the construction industry in the upcoming general election, JCT publishes the new Design and Build 2024 contracts, new second staircase requirement for qualifying residential buildings and a recent judgment requiring strict compliance with notice provisions in some building contracts

General election announced for 4 July 2024

In Bolwell & Anor v NWC Finance Pty Ltd & Ors [2024] VSC 30, the Supreme Court of Victoria clarified that a lawyer will not be a "controller" of property within the meaning of section 9 of the Corporations Act 2001 (Cth) (the Act) simply because it was retained to act for a mortgagee exercising their power of sale.

This judgment provides comfort to lawyers as it confirms that they will not assume the obligations of a "controller" under the Act solely by reason of them acting in connection with the sale of real property in an insolvency context.

The England and Wales Court of Appeal recently handed down its first judgment relating to a restructuring plan under Part 26A of the UK Companies Act 2006: Re AGPS Bondco Plc [2024] EWCA Civ 24. Restructuring plans were a 2020 innovation in UK insolvency law, as described in our earlier alert.

Mislabelling a debt instrument as a promissory note can result in unintended consequences

Promissory notes and loan notes are often used in group reorganisations to paper a loan relationship, but because the terms are frequently used interchangeably, there is scope for misuse and misunderstanding.

What is causing supply chain pressure and how can you spot the red flags?

Increase in insolvencies

Insolvency rates in the manufacturing and construction industries are higher than pre-pandemic levels and are showing an upward trend on a year-by-year basis since 2021.

What are the key considerations and actions for businesses when undertaking a reorganisation?

UK members will want to monitor the situation and prepare for contingencies as US company experiences financial difficulties

On Monday 7 November 2023 WeWork Inc. filed for Chapter 11 bankruptcy in respect of its US business, and intends to file for recognition of those proceedings in Canada.