The receivership debtors ran a Ponzi scheme. Acting under the state Uniform Fraudulent Transfer Act, the receiver sued the debtors’ bank to avoid bank deposits as transfers made with actual intent to hinder, delay, or defraud creditors. The UFTA defines “transfer” as any mode, direct or in

GOVERNANCE & SECURITIES LAW FOCUS

JULY 2020/LATIN AMERICA EDITION

Below is a summary of the main developments in U.S., EU, and U.K. corporate governance and securities law since our last update in May 2020.

See our page dedicated to the latest financial regulatory developments.

IN THIS ISSUE

Insurance covering the representations and warranties of a seller in a purchase agreement (RWI) has become relatively commonplace in non-distressed M&A transactions. Insurance covering other specific contingent risks associated with a transaction, such as environment liability or tax liability or benefits, is also available. Less commonly, but with increasing frequency, these transaction insurance policies are being marketed and sold in transactions arising in bankruptcy and insolvency transactions.

No two commercial mediations are the same.

However, there are three elements common to most cases:

1. Legal – in the absence of a consensual settlement, the law will decide the issue.

2. Commercial – all by definition have a commercial component – usually money.

3. Emotional – to a greater or less extent, where people are involved, emotions will play a part. The dispute may be a business dispute, but businesses are run by people, each of whom has his/her own drivers.

UK insolvency landscape permanently changed by the Corporate Insolvency and Governance Act 2020 (“the 2020 Act”).

On 26 June 2020 the Corporate Insolvency and Governance Act 2020 (“the 2020 Act”) finally entered into force. Now it is in its final form, Simon Newman and Christopher Pask of 1 Chancery Lane’s Commercial, Chancery and Property team will be providing their views on its provisions and their impact over a series of updates.

GOVERNANCE & SECURITIES LAW FOCUS

JULY 2020/EUROPE EDITION

Below is a summary of the main developments in U.S., EU, U.K. and Italian corporate governance and securities law since our last update in April 2020.

See our page dedicated to the latest financial regulatory developments.

IN THIS ISSUE

More than £46 billion has been lent or approved since March 2020 under the three loan schemes backed by the UK government – the Coronavirus Business Interruption Loan Scheme, the Coronavirus Large Business Interruption Loan Scheme, and the Bounce Back Loan Scheme – and more than £30 billion of VAT has been deferred by the government.

The COVID-19 pandemic has heavily disrupted our lives, communities, and businesses. Even with new approaches, not all businesses can overcome the substantial challenges brought by the pandemic. Lending programs like the Paycheck Protection Program have brought temporary relief, but many small businesses remain exposed to financial difficulties and face a real risk of bankruptcy.

New Small Business Provisions in Bankruptcy Code

A Chapter 13 bankruptcy plan requires a debtor to satisfy unsecured debts by paying all “projected disposable income” to unsecured creditors over a five-year period. In a recent case before the U.S.

Se ha publicado en el BOE un nuevo Real Decreto-ley (el 25/2020), con medidas urgentes destinadas a preservar el tejido productivo y apoyar la reactivación económica y el empleo.

Destacamos a continuación las principales novedades:

1. Medidas de apoyo a la inversión y a la solvencia

Se aprueba una nueva línea de avales ICO por importe de hasta un máximo de 40.000 millones de euros para

financiar inversiones productivas (a diferencia de las anteriores líneas, que estaban destinadas solucionar

problemas de liquidez).