Insolvency & Restructuring Bulletin
A recent court decision has provided clarity on the application of the Wage Earner Protection Program Act (“WEPPA”) to former employees of companies undergoing restructuring under the Companies’ Creditors Arrangement Act (“CCAA”). The central issue was whether WEPPA applies to employees who were terminated as a result of a reverse vesting order (“RVO”).
Background
The High Court has considered whether trustees in bankruptcy are in breach of sanctions by allowing sanctioned Russian creditors to participate in UK insolvency proceedings.
Background
A Russian national, resident in London is subject to bankruptcy proceedings both in Russia and the UK. The bankrupt's creditors include four Russian banks in liquidation in Russia. The UK trustees in bankruptcy applied to the court for directions concerning three main questions:
The latest amendment to the Czech Insolvency Act applies a shorter debt discharge period to both entrepreneurs and non-entrepreneurial individuals.
Background
The Czech Parliament has finally approved an amendment to the Czech Insolvency Act, reducing the debt discharge period from five to three years, in line with EU Directive 2019/1023. A key point of contention that delayed the amendment was whether to apply this shortened period not only to entrepreneurs but also to non-entrepreneurial individuals, extending beyond the EU’s minimum requirements.
The English High Court has, for the first time, ordered that security for costs be provided by the plan company in favour of a creditor.
Background
Consort was a contractor under a Private Finance Initiative (PFI) for the development of new hospital facilities for an NHS Trust. It proposed a restructuring plan, primarily directed at compromising its liabilities under the PFI project agreement.
The German Federal Court of Justice (the Federal Court) has considered whether a so-called "weak" preliminary insolvency administrator, entrusted to continue business operations with the management during the preliminary proceeding, may take actions in the interest of these operations, where it is unclear whether the debtor has discontinued the business.
Background
Insolvency and Restructuring Bulletin
From July 21, the reform of rules on prospectuses, intended to establish a common rulebook across the EU to encourage financing through capital markets, will directly apply in Spain.
The perspective of a ahot summer arriving is an excellent opportunity to take a look at the most relevant events that occured on the second quarter of 2019.
On an international level, and in contrast with the previous quarters, few events are worth mentioning.
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