Asset-backed or net asset value (NAV) facilities as a feature of the fund finance landscape are not new, but their prevalence and uses have increased over the last five years in particular.
Having double dipped and bumped along the bottom, the UK economy's rollercoaster ride looks set to continue for some time to come. Yet despite these grim conditions, it has been surprising to see a year on year decline in the number of companies entering formal insolvency. Our restructuring group reports on the factors at play and their experience of the current market.
Government’s plan to boost UK house building
Recently the Prime Minister announced a new housing and planning package that is intended to stimulate:
Notice of assignment
Notice of assignment can be given by either the assignee or assignor under the Consumer Credit Act 1974 (CCA).
This was the High Court's finding in Smith v 1st Credit (Finance) Ltd and another. Smith was notified by her credit card company that her credit card debt had been assigned to 1st Credit. 1st Credit wrote to Smith shortly afterwards confirming the assignment and advising how payment could be made. Smith failed to pay and was made bankrupt by 1st Credit which subsequently repossessed and sold Smith's property.
- Jackson reforms will go ahead in April 2013
The new Master of the Rolls, Lord Dyson, has confirmed that the Jackson reforms will come into force in April 2013, scotching rumours that the legislative process would not be completed in time. He emphasised the importance of the Court of Appeal's role in implementing the reforms, maintaining consistency and minimising satellite litigation, urging the court to "speak clearly through [its] judgments in explaining how the reforms are intended to operate". He also described the issue of costs management
In certain non-EEA countries, if a firm becomes insolvent, the claims of depositors in the home country will be preferred above the claims of depositors outside the home country, including the depositors of the UK branch. The FSA is now consulting on proposals which will very significantly impact deposit-taking firms from non-EEA countries that operate national depositor preference regimes.
These firms will be required either:
This article looks at some of the issues a lender should consider when a borrower or security provider is incorporated or has substantial assets outside England and Wales. The lender needs to know how this will affect its security and remedies, and the possible impact of insolvency procedures in relevant jurisdictions.
- The 1992 ISDA Master Agreement: Court of Appeal provides clarity on payment obligations owed to insolvent counterparties
Lomas v JFB Firth Rixson Inc [2012] EWCA Civ 419
Facts
In 2006, a subsidiary of a Brazilian company issued US$100 million in principal amount of notes, guaranteed by its parent and constituted by a trust deed.
BBA has published a briefing paper setting out its position on the Commission’s proposal for a bank recovery and resolution directive. It suggests that certain powers, such as appointing a Special Manager or requiring a plan for debt restructuring, are more akin to resolution tools and should not be used until the firm has reached its point of non-viability. This also applies to the bail-in tool, which cannot be used as the first or default option.