Directors beware!
Key Takeaway
Luxembourg’s law of 5 August 2005 on financial collateral arrangements, as amended (Collateral Law 2005), continues to offer strong safe-harbor protections for financial collateral arrangements and is now confirmed to apply to insolvency proceedings globally.
Recent Developments
Court of Appeal Ruling
Für das Jahr 2025 wird in Deutschland die höchste Zahl an Unternehmensinsolvenzen seit der Wirtschaftskrise des Jahres 2009 erwartet. So jedenfalls titelte kürzlich die Wirtschaftswoche (WiWo). Für den Januar 2025 meldete das Statistische Bundesamt (Destatis) bereits eine Zunahme der beantragten Insolvenzverfahren um rund 14 % gegenüber dem Vorjahresmonat.
The Hon’ble Supreme Court of India (“Supreme Court”) by a 2:1 majority in Independent Sugar Corporation Limited v Girish Sriram Juneja and Ors1, has held that in case of resolution plans proposing a combination (i.e., a merger or amalgamation of the entities) of a corporate debtor, the Competition Commission of India (“CCI”) must first grant the necessary approval before such Resolution Plan is placed before the Committee of Creditors (“CoC”) for it
The National Company Law Appellate Tribunal, Chennai (“NCLAT”) in Sudhir Bobba (Suspended Director of Servomax Limited) vs. M/s.
1. Introduction
Chapter 15 of the Bankruptcy Code is a mechanism for debtors to have foreign insolvency proceedings recognized in the U.S. and to have the orders entered by a foreign court in those insolvency proceedings abroad given effect in the U.S.
Key Issues
RECOGNITION OF A FOREIGN MAIN PROCEEDING
Introduction
•The limitation law concerns the primary concept of ascribing a fixed time frame within which all legal contentions are required to be raised by parties; the law in this regard is governed primarily by The Limitation Act.
•S. 238A of IBC, 2016 provides:-
“238A. The provisions of the Limitation Act, 1963 shall, as far as may be, apply to the proceedings or appeals before the Adjudicating Authority, the National Company Law Appellate Tribunal, the Debt Recovery Tribunal or the Debt Recovery Appellate Tribunal, as the case may be.”
The UK Supreme Court’s recent decision in El-Husseini and another v Invest Bank PSC [2025] UKSC 4 has clarified the circumstances in which section 423 of the Insolvency Act 1986 (the Act) provides protection against attempts by debtors to “defeat their creditors and make themselves judgment-proof.” This is a critical decision for insolvency practitioners, any corporate or fund which is involved in distressed deals and beyond to acquirers who were not aware they were dealing in distressed assets.