The lack of harmonised insolvency laws has long been regarded as one of the greatest obstacles to the free movement of capital in the EU in general and to cross-border investments, insolvency proceedings and restructuring in particular.
Die EU-Kommission hat einen Richtlinienentwurf u.a. zur verpflichtenden Aufnahme eines „Pre-pack-Verfahrens“ in die nationalen Insolvenzgesetze vorgelegt.
Die Entscheidung des BGH zur Wirksamkeit insolvenzabhängiger Lösungsklauseln könnte der Grundstein einer neuen Linie in der Rechtsprechung werden.
In what was described as a “momentous decision for company law”, the Supreme Court in BTI 2014 LLC v. Sequana SA and Others [2022] UKSC 25 (“Sequana”) confirmed the existence of a duty owed by company directors to consider the interests of its creditors when nearing insolvency.
It marks the first time the nature, scope, and content of directors’ duties to creditors when a company is nearing insolvency has been considered by the Supreme Court.
With the current economic difficulties affecting the tech sector, a number of companies who took Future Fund investment during the pandemic have been faced with the following realities:
Introduction
In May 2022, there were a total of 1,817 company insolvencies in England and Wales. Overall company insolvencies in May 2022 were 34% higher when compared to May 2019 (pre-pandemic) and 79% higher than insolvencies recorded in May 2021.
More insolvencies means more directors being issued director questionnaires from liquidators or administrators asking them to explain their prior conduct.
This article was originally published by Travel Weekly on 21 July
The UK Government has indicated that its enthusiasm for introducing consumer protection for airline failure has waned significantly. It now looks doubtful that the recommendations of the Airline Insolvency Review will be implemented in the short term, or even at all.
A recently published case has shone a new light on the well-known fact of English company law – that a company has its own legal personality and is therefore separate and distinct from its members and directors.
Thus, a company shields its members and directors from most liabilities. For directors, this protective veil is pierced in certain limited circumstances such as those set out below.
The fact that more businesses have not failed is the most surprising thing about the Covid-19 pandemic. However, if you look at the fashion retail sector alone, the list of some of the high profile casualties is alarming: Arcadia Group, Bonmarché, Debenhams, DW Sports, Laura Ashley, M&Co, Monsoon, Moss Bros, Oasis and Warehouse, Peacock and Jaeger, TM Lewin and Victoria’s Secret (UK Business)… with more expected.
Every five years or so, the insolvency profession seems to try and wrestle with the public outcry about the use of so-called pre-packs. In its simplest terms, this is where “Widget Manufacturing Limited” goes into administration, and the very next day “Widget Manufacturing 2021 Limited” is operating the same business and being owned by the same shareholders. The only crucial difference is that several key liabilities (usually owed to landlords) are left behind in the insolvent business.