Good afternoon.
Following are this week’s summaries of the Court of Appeal for Ontario for the week of May 31, 2021.
The last 12 months has seen a number of court applications being made for extensions of time to register a security interest under s293 of the Personal Property Securities Act 2009 (Cth) (PPSA) and/or s588FM of the Corporations Act 2001 (Cth), to avoid collateral vesting in the grantor upon an insolvency event.
In Dr. Thomas Markusic et al. v. Michael Blum et al. memorandum opinion 200818, the Delaware Chancery Court (the “Court”) declined to extend the Gentile doctrine. In so doing, the Court held that the counterclaims attempting to rely on it had to be dismissed.
As with many retail businesses, the Nero Group has been seriously impacted by the Covid-19 pandemic.
The company is the tenant of 619 stores and in November 2020 the directors proposed a Company Voluntary Arrangement, which is a statutory compromise voted on by creditors. The CVA proposal was principally focused on the company’s landlords, seeking to compromise the terms of the leases as to arrears of rent, future rent, service charges and insurance.
The creditors voted in favour of the CVA in December 2020.
Un Juzgado de lo Mercantil aprueba, por primera vez, la modificación de un convenio concursal al amparo de la normativa de medidas procesales y organizativas para hacer frente al COVID-19 en el ámbito de la administración de justicia.
COVID-19
Government Intervention Schemes
Current as of 21 May 2021
Government Intervention Schemes
COVID-19 Government Intervention Schemes 2
Countries around the globe are facing unprecedented and rapid change due to the COVID-19 pandemic. This guide provides a summary of key government interventions around the globe in relation to: EU State Aid Approvals (for EMEA region), foreign investment restrictions, debt, equity and taxation.
The ruling confirmed that Section 423 of the Insolvency Act 1986 has extensive international reach, and does not require a transaction at an undervalue to leave the debtor with insufficient assets.
Background
On May 21, 2021, the Apex Court of India, in the case of Lalit Kumar Jain vs. Union of India & Ors.1, upheld the validity of the Centre’s notification dated November 15, 2019, allowing banks to proceed against personal guarantors for recovery of loans given to a company under the Insolvency and Bankruptcy Code, 2016 (IBC) (“Notification”).
The Court (Mr Justice Miles) has refused to sanction a scheme of arrangement (the “Scheme”) between ALL Scheme Limited (the “Company”) and its creditors. The Company is an entity within the Amigo group of companies (the “Group”).
Almost everyone knows the tale of Kodak. After over 100 years of market dominance in film and camera production, it was forced into bankruptcy in 2012 after Kodak’s management failed to understand the threat of digital photography on their business.
A similar story befell Blockbuster. A market leader in the late 1990s, by 2010 its business was in tatters as Netflix and online streaming soared in popularity.