Below we will explore several problems that arise in connection with para. 9 of the 4th Additional Provision ("AP") of the Insolvency Act ("LCon") when there are personal guarantors – or collateral-providers for third party debt – within refinancing arrangement ‘homologation’ (court-sanctioning) proceedings under said 4th AP.
1. Contingent claim against the guarantor who refinances under the 4th AP.
The regime for dealing with insolvency proceedings within the European Union (EU) is about to become more coordinated. The timing is ironic given that the change will take place in the period leading up to the March 2019 exit of the United Kingdom from the EU.
In Steven B. Trusa v. Norman Nepo, et al., Civil Action No. 12071-VCMR, the Delaware Court of Chancery granted defendants’ motion to dismiss, holding that the creditor plaintiff lacked standing to pursue a claim for breach of fiduciary duty and a claim for dissolution of the company, that he failed to state a claim for the remaining assertions, and that the declaratory judgment claim was duplicative.
La Dirección General de Tributos analiza las reglas de valoración aplicables en supuestos de aportaciones de capital realizadas por compensación de créditos en aquellos casos en los que la capitalización se efectúa en diferentes plazos y de forma sucesiva.
New Law to Encourage Informal Restructuring
On 28 March 2017, the Federal Government released its long awaited draft legislation that is designed to encourage restructuring of distressed businesses.
The proposed legislation is open for consultation with the finalised legislation expected to come into effect on 1 January 2018. There are two proposed changes:
Australia Restructuring and InsolvencyAlert
On 28 March 2017, the Federal Government released its long awaited draft legislation for reforms to insolvency laws in Australia. The changes focus on providing a safe harbour for directors of distressed companies and a stay on the enforcement of ipso facto clauses in contracts.
The financial crisis has brought significant regulatory changes for credit institutions, many of them aimed at strengthening their capital requirements and creating safety buffers to absorb losses and recapitalise unsound and failing institutions.
The latest is an instrument known as senior non-preferred debt, which is midway between senior debt and subordinated/Tier 2 debt. This instrument will not qualify as Tier 1 or Tier 2 capital, but will be eligible to compute for purposes of TLAC/MREL requirements and will be cheaper for banks than pure subordinated debt.
Siguen sin resolverse satisfactoriamente las cuestiones laborales y de la Seguridad Social en relación con la transmisión de unidad productiva en concurso.
La Dirección General de Tributos examina, en un contexto de consolidación fiscal, las consecuencias fiscales de una operación en virtud de la cual la entidad dominante condona los créditos que tiene sobre sus filiales, derechos adquiridos previamente por medio de una operación de reestructuración empresarial no acogida al régimen de neutralidad fiscal y registrados por un valor inferior a su nominal.
In a previous Legal Insight, we foreshadowed potential guidance from the ASX on the interaction between the new insolvent trading safe harbour laws and the continuous disclosure obligations of a public company.