Eight lessons from previous recessions

It does not take a professional economist to predict that a serious economic downturn is possible in the UK. Given that workforces will be impacted by this, many companies providing workforce support services are likely to be particularly affected.

KEY POINTS

Two recent cases examine whether, given the impossibility to liquidate a company due to a corporate deadlock, a court can invalidate certain resolutions at the request of one shareholder.

UK judgment is a prompt for landlords to consider all angles to maximise rent recovery in harsh economic conditions

The UK High Court has ruled in in favour of a landlord whose original tenant and guarantor were held liable for the rent accrued on a gym in Leeds despite the subsequent assignee operating under a restructuring plan.

In the April 2022 decision of Harte Gold Corp. (Re), the Ontario Superior Court of Justice [Commercial List] (the Court) provides guidance on the appropriate use of reverse vesting orders (RVOs) in insolvency proceedings and enumerates key questions that must be addressed prior to the granting of an RVO. It is clear that the Court's reasoning in Harte Gold will have far reaching implications.

The reforms respond to the needs of small and medium-sized companies, speed up processes and support business recovery

The Spanish Congress has approved (30 June 2022) the Insolvency Law Reform Bill, which transposes the Directive on restructuring and insolvency. A first text was approved in December 2021, but amendments were introduced throughout the first half of 2022 that modified several important points.

This overview is intended as an introductory summary to the Companies' Creditors Arrangement Act (CCAA), Canada’s principal statute for the reorganization of a large insolvency corporation. The CCAA applies in every province and territory of Canada, and even purports to have worldwide jurisdiction.

The Insolvency Service is satisfied that the restructuring plan and moratorium processes are broadly meeting their policy objectives – and that ipso facto clauses are likely to be used more in future

The Business Corporations Act (Alberta) (ABCA) received an overhaul this week. Bill 84, Business Corporations Amendment Act, 2021 came into force on May 31, 2022. That Bill introduced several changes to the ABCA. These amendments are intended to modernize Alberta's corporate legislation to attract investment and make Alberta the leading province for corporations in Canada.

This overview is intended as an introductory summary to the Companies' Creditors Arrangement Act (CCAA), Canada’s principal statute for the reorganization of a large insolvency corporation. The CCAA applies in every province and territory of Canada, and even purports to have worldwide jurisdiction.