In a ruling dated 16 October 2015, the Dutch Supreme Court has confirmed the enforceability of security surplus arrangements in the event a security provider is declared bankrupt. In addition, the Dutch Supreme Court has confirmed that, unlike statutory recourse claims (regresrechten), contractual recourse claims can be construed in such a manner that they come into existence (as conditional claims) before payment by the guarantor of the debt owed by the debtor, after which they become unconditional.
Recently, the Dutch Supreme Court has given an interesting ruling relating to the consequences of commingling (vermenging) of multiple objects for a security right created over one of those objects.
Dutch Supreme Court 14 August 2015 (ECLI:NL:HR:2015:2192)
In a judgment dated 13 October 2015 in proceedings between a bank and its client the Arnhem-Leeuwarden Court of Appeal ruled that the bank was allowed to terminate the credit agreement with the client on the grounds that the client had caused a reduction in the value of shares pledged to the bank.
Arnhem-Leeuwarden Court of Appeal 13 October 2015 (ECLI:NL:GHARL:2015:8354)
Blog on The Hague Court of Appeal, 17 February 2015, ECLI:NL:GHDHA:2015:281 (FGH Bank N.V. v. Aannemingsbedrijf Fraanje B.V.)
Court of Appeal Arnhem-Leeuwarden: a shareholder loan does not in itself have a subordinated character. If subordination has not been specifically agreed, other creditors may file a claim on the basis of tort law or on the principles of reasonableness and fairness in order to achieve a similar result, in other words as if the shareholder loan had been subordinated.
Enactment
On 11 September the Belgian Act that introduces certain measures to restrict the activities of vulture funds (the “Act”) was published in the Belgian Official Journal.
Op 23 juni 2015 zijn de wetsvoorstellen civielrechtelijk bestuursverbod en herziening strafbaarstelling faillissementsfraude door de Tweede Kamer aangenomen. Beide wetsvoorstellen behoren tot het Wetgevingsprogramma Herijking Faillissementsrecht en zijn gericht op fraudebestrijding. Deze wetsvoorstellen zullen mogelijk op 1 januari 2016 in werking treden.
Het wetgevingsprogramma Herijking Faillissementsrecht bestaat uit drie pijlers, te weten (i) fraudebestrijding; (ii) versterking van het reorganiserend vermogen van bedrijven; en (iii) modernisering van het faillissementsrecht.
Original Newsletter(s) this article was published in: Blaneys on Business Bulletin: June 2015
The courts in Ontario and Delaware have decided who is to be paid what from the more than $7.1 billion available to meet creditors’ claims in the Nortel Networks insolvency, closing the 120-year-old book on Canada’s first global research, development and technology enterprise.
The biggest insolvency in national retailing history, Target stores’ Canadian subsidiary, is scheduled to take key steps on the road to resolution this month and over the summer.
Target Canada applied for protection under the Companies’ Creditors Arrangement Act (CCAA) last January 15 so that it could restructure and liquidate. It then closed all its 133 stores, eliminating the jobs of more than 14,000 employees and leaving its landlords and almost 1,800 other suppliers on the hook for close to $3 billion.