The Channel Islands of Guernsey and Jersey did not introduce emergency insolvency legislation as a result of the Covid-19 pandemic and do not presently have measures equivalent to those found in the UK’s Corporate Insolvency and Governance Act, 2020 (“CIGA”).
Last month, leading litigation funder and asset management firm Burford posed questions on major legal developments in the offshore markets over the past 18 months and economic trends that will play out in the markets post-pandemic to leading litigators, insolvency practitioners and financial professionals in the region.
In today's global economy, cross-border structures, frequently including an offshore entity, have become familiar to office holders around the world.
However, the territorial limits of a court’s powers can mean that such structures present obstacles with which office holders attempting to conduct an orderly and efficient winding up of a debtor's affairs need to familiarise themselves.
The principle of modified universalism mandates that, within the constraints of public policy, courts should co-operate across jurisdictions.
Rogue directors will find themselves in the firing line if and when The Rating (COVID-19) and Directors Disqualification (Dissolved Companies) Bill, which is currently making its way through parliament, comes into force. The proposed bill will enable the investigation and potential disqualification of directors of dissolved companies, and responds in particular to concerns around COVID-related fraud.
Background
Grand Court confirms that Section 48 of the Trusts Act (2021 Revision) provides a statutory gateway for the approval of former liquidators' fees as statutory trustee pursuant to Order 23, rule 5 of the CWR
The past week has been frustrating for landlords, with the High Court rejecting a landlord challenge to New Look’s CVA (Lazari Properties 2 Ltd and others v New Look Retailers Ltd and others [2021] EWHC 1209 (Ch)) and days later sanctioning Virgin Active’s restructuring plan (Re Virgin Active Holdings Ltd and others [2021] EWHC 1246 (Ch)).
The government has recently announced plans to extend the moratorium on evictions for non-payment of commercial rent - first introduced in March 2020 under the Coronavirus Act 2020 - to 25 March 2022. At the same time it has introduced legislation to extend the restrictions on statutory demands and winding-up petitions under the Corporate Insolvency and Governance Act 2020 (CIGA) to 30 September 2021.
International Insolvency & Restructuring Report 2021/22 capital markets intelligence Insolvency cover 2021-22.indd 1 29/04/2021 11:12:07 International Insolvency & Restructuring Report 2021/22 The unprecedented financial volatility and operational uncertainty brought about by the COVID-19 pandemic has forced many companies to consider a range of restructuring options in a variety of jurisdictions, either on a proactive basis or as a reaction to creditor pressure.
Following a government announcement on 16 June, the Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of the Relevant Period) (No. 2) Regulations 2021 (the Regulations) have been laid before Parliament, coming into force on 22 June.
Landlords of New Look stores have failed in their challenge to a CVA which wrote off rent arrears and imposed turnover rents on hundreds of stores.
Like so many high street fashion retailers New Look was already in a precarious position before the pandemic hit. When its turnover was reduced to nil overnight it projected it would run out of cash without help.