The Federal Court found that where a trust deed provides for the cessation of a corporate trustee upon the appointment of an administrator or upon a resolution for its liquidation (and there is no replacement trustee appointed), the corporate trustee retains its right of indemnity and continues as bare trustee but does not have the power to sell the trust assets. However, the Court was persuaded to grant relief to the liquidators of the trustee (who had sold trust assets) on the basis they had not been advised by their solicitors of the disqualification clause and they com
PROCEDURE INTERNATIONALE D’INSOLVABILITE
SEUL LE TRIBUNAL QUI OUVRE LA PROCEDURE PRINCIPALE A L’ENCONTRE D’UNE PERSONNE MORALE EST COMPETENT POUR PRONONCER UNE INTERDICTION DE GERER CONTRE LE DIRIGEANT DE CELLE-CI (CASS.COM. 22 JANVIER 2013 N°11-17.968 (N°55 F-PB), MAJOT C/ STE BECHERET- THIERRY-SENECHAL- GORRIAS ES. QUAL.)
The Madrid Provincial Court (Section 28) ruling of December 7, 2012, and the Barcelona Provincial Court (Section 15) ruling of October 4, 2012, judged the insolvency categorisation of a credit the receivers had categorised as subordinate because they held that the creditor company belonged to the same corporate group as the insolvent company.6 In both cases, the provincial courts analysed the concept of group for the purposes of insolvency before and after the reform of the Insolvency Act introduced under Act 38/2011.
The Supreme Court clarified the insolvency categorisation for interest rate swap contracts, classifying them as insolvency credits, as they fail to meet the functional synallagma requirement, which establishes functional reciprocal obligations.
Introduction
On 29 January 2013, the Federal Court of Australia made orders approving the creditors’ scheme of arrangement between Nine Entertainment Group Pty Limited (NEG) and its senior and mezzanine lenders (Nine Scheme).
The Nine Scheme, made under Part 5.1 of the Corporations Act, follows Alinta and Centro as the third debt for equity restructuring of a major Australian company in as many years.
This is the second case in which the New South Wales Supreme Court has granted an extension of time for registration of a security interest on the Personal Property Securities Register where the delay is accidental or due to inadvertence. However, the extension in this case was conditional firstly, by preserving the priority of another security interest which had been registered in the meantime and secondly, because there was insufficient evidence of the financial position of the grantor to establish that an extension was unlikely to prejudice other creditors or shareholde
Compensation of a debt made after the debtor’s bankruptcy declaration via the appropriation of securities pledged by virtue of a financial guarantee, is admitted.
The validity of a transaction assessed as “compensation” that was carried out after the bankruptcy declaration of the company in debt was questioned before the Supreme Court. The credit entity applied the value obtained from the reimbursement of an investment fund that had been pledged to secure a credit policy to reduce the debt.
JUDGEMENTS NO. 541/2012, OF OCTOBER 23, 2012, BY THE ZARAGOZA BRANCH OF THE COURT OF APPEALS, NOS. 413/2011, OF DECEMBER 19, AND 18/2012, OF JANUARY 18, BY THE BURGOS BRANCH OF THE COURT OF APPEALS, NO. 132/2012, OF APRIL 10, BY THE RULING OF THE VALENCIA BRANCH OF THE COURT OF APPEAL, AND NOS. 210/2012 AND 211/2012, BOTH OF JULY 20, BY THE ALICANTE COMMERCIAL COURT
Guarantees granted by a group company for securing a loan used to repay the insolvent party’s personal debts are detrimental to the insolvency estate. Article 10 of the Mortgage Market Act refers solely to mortgages that are already part of an issue of mortgage securities.
The Supreme Court sets a precedent regarding the bankruptcy classification of the credits arising from contracts with reciprocal obligations whose performance is ordered by the judge in the interest of the bankruptcy: these are credits against the bankrupt estate independently of when they are originated.