1. Introduction
The longstanding debate surrounding the prioritization of crown debts vis-à-vis private debts has entered a new chapter with the advent of the Insolvency and Bankruptcy Code, 2016 (“IBC”). Prior to the IBC, the common law principle generally granted crown debts preferential status over unsecured debts. This historical primacy stemmed from the sovereign's role as the embodiment of the public good, requiring unimpeded revenue collection for the smooth functioning of the State.
Introduction
Barely six years since the enactment of the Insolvency and Bankruptcy Code, 2016 (“Code”), the Code has already undergone various amendments from to time, to aid its broad objective of time bound insolvency resolution, maximisation of value of assets of corporate debtors and balancing the interests of all stakeholders. Besides the amendments, judicial pronouncements have also played an instrumental role in shaping the Code in its present form.
Mac Interiors Limited (the Company), a Northern Ireland-incorporated company, has become the first company incorporated outside the Irish State (and the EU) to have an examiner appointed under the examinership regime provided for in section 509 of the Companies Act 2014 (the 2014 Act).
The extant regulatory framework for Asset Reconstruction Companies (“ARCs”) has been amended by the Reserve Bank of India (“RBI”), vide its notification titled ‘Review of Regulatory Framework for Asset Reconstruction Companies (ARCs)’ dated 11th October 2022 (“Framework”).
Key Changes:
Some of the key changes brought about by the Framework are as follows:
The European Union (Preventive Restructuring) Regulations 2021 (the Regulations) were signed into law in Ireland on 27 July 2022. The Regulations provide for the transposition of the mandatory articles of Directive (EU) 2019/1023 on preventive restructuring frameworks, on discharge of debt and disqualifications, and on measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt (the Directive).
On 27 July 2022, the European Union (Preventive Restructuring) Regulations 2022 (S.I. 380/2022) (the Regulations) amended the Irish Companies Act 2014 (the Act) by transposing certain requirements of Directive (EU) 2019/1023 of the European Parliament and of the Council of 20 June 2019 (the Directive) not already provided for in Irish law.
This has resulted in a number of modifications to the examinership regime and, for the first time, a codification of directors' duties when companies are in the `zone of insolvency'.
The changes to the Examinership regime include:
The pre-existing dispute which may be ground to thwart an application under Section 9 of the I&B Code, 2016 (“Code”)has to be a real dispute, a conflict or controversy. Such conflict of claims or rights should be apparent from the reply to Demand Notice as contemplated by Section 8(2) of the Code. Essentially meaning that the Corporate Debtor is not to raise bogie of disputes but there has to be a real substantial dispute.
Voyager Aviation Holdings, LLC (Voyager) is a privately held aircraft owner and lessor with approximately $2 billion in assets. Voyager is headquartered in Dublin and has offices in Stamford, Connecticut.
Earlier this year, A&L Goodbody LLP advised Voyager on the successful restructuring of its senior note obligations.1 The restructuring was implemented by way of a US exchange offer that simultaneously solicited support for both a "plan B" Irish scheme of arrangement and a "plan C" prepack US Chapter 11.
The Reserve Bank of India (“RBI”) has, in its capacity as the regulator of non-banking financial companies and under the powers conferred to it pursuant to Section 45-IE (1) of the Reserve Bank of India Act, 1934 (“RBI Act”), superseded the Board of Directors of RCAP (“Board”).
The press release of even date from the RBI also stipulates the following:
The Hon’ble Supreme Court of India (“SC”) has held that National Company Law Tribunal (“NCLT”) cannot exercise its residuary jurisdiction under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016 (“IBC”) to adjudicate upon the contractual dispute between the parties.