On 1st January 2019, the revised Swiss Law on Cross-Border Insolvencies entered into force. The first experiences with the revised law are throughout positive and show that the newly introduced simplifications of the Swiss cross-border insolvency regime are increasingly used by foreign liquidators and their counsels.
Previous regime
On 17 October 2020, Ukraine enacted changes to the Code on Bankruptcy Procedures in order to protect businesses from the negative financial impact of COVID-19.
These changes provide businesses with additional time to recover from financial difficulties and protection from immediate legal action by creditors.
Upon passage of the amendments, creditors are prohibited from opening court proceedings for claims (matured after 12 March 2020) on the bankruptcy of legal entities and individual entrepreneurs.
The English courts are known for being pro-arbitration. In the recent case of Riverrock Securities Limited v International Bank of St Petersburg (Joint Stock Company) [2020] EWHC 2483 (Comm) the English High Court has granted an anti-suit injunction in relation to claims being made in foreign bankruptcy proceedings, where the underlying agreements included arbitration provisions with a London seat.
The parties
Die für Geschäftspartner (Gläubiger) eines bankrotten Kaufmanns oder Unternehmens (Schuldner) bereits an sich schlechte Situation wird durch das Recht des Insolvenzverwalters zur Insolvenzanfechtung nach §§ 129 ff InsO vielfach erst richtig ärgerlich. Insolvenzanfechtung bedeutet, dass derjenige, der vorinsolvenzlich noch Leistungen oder auch nur Sicherheiten vom Schuldner erhalten hat, gezwungen sein kann, diese zur Befriedigung der Gläubigergesamtheit wieder herausgeben zu müssen.
Wenn Insolvenz droht
The new set of Swiss laws on blockchain and distributed ledger technology (DLT; Blockchain/DLT Laws) has been approved by the Swiss Parliament on 25 September 2020 and is thus now in final form. Subject to a referendum, which is unlikely, the Blockchain/DLT Laws will presumably enter into force early next year.
The main topics of the Blockchain/DLT Laws are:
Can state regulatory agencies move ahead with lawsuits against businesses who file for bankruptcy in order to enforce consumer protection and business laws, or does the automatic stay’s broad injunctive sweep capture those actions? The answer depends on whether the state is acting in its regulatory capacity or simply like another creditor – and the distinction is not always clear.
The COVID pandemic is going to increase bankruptcy filings in 2020 and 2021. Therefore, it is important to know some bankruptcy basics in order to maximize recovery. It is also important to retain bankruptcy counsel, but only after ensuring the likelihood of recovery and if the case/claims necessitate engagement of a bankruptcy specialist.
What kind of bankruptcy has been filed?
The Court of Appeal for Ontario's decision in Dal Bianco v Deem Management Services Limited, 2020 ONCA 585 [Dal Bianco] is the most recent pronouncement on resolving procedural conflicts between the Bankruptcy and Insolvency Act, RSC, 1985, c B-3 (BIA) and provincial enactments.
Yes, but only if it is done carefully.
All three of these options are procedures intended to secure the most money from the sale for the payment of creditors, and to leave the Seller creditor with no post-closing liability, but the procedure is not set up to provide a Buyer the most protection. However, if you proceed carefully, you can secure the major protections you need, in most circumstances.
Compare these procedures. In a normal contractual sale, a Buyer usually has the following protections:
The COVID-19 pandemic has forced big-name brands to pursue unique strategies to secure fiscal relief.