On 13 October 2023, the Insolvency Service (IS), acting on behalf of the Secretary of State for Business and Trade, discontinued the disqualification proceedings which it had initiated against five former non-executive directors (NEDs) of Carillion plc, the construction and outsourcing giant that collapsed into liquidation in 2018.
Between 1 April and 30 June 2023, there were 6,342 registered company insolvencies, which is the highest number of insolvencies since the second quarter of 2009, and a 9% increase on the previous quarter of 2023.
Key takeaways
Any restructuring where there are multiple tiers of debt and lenders with different interests and views can be tricky. Lenders will try to anticipate these difficulties by entering into an intercreditor agreement (an ICA) setting each lender’s ranking and rights to enforce. Typically, an ICA will allow the senior lenders at least the option of taking the lead on an enforcement or a restructuring.
Other than the usual post termination restrictions following a director’s departure, one would assume that directors would no longer be subject to any obligations upon their resignation. Whilst this is strictly true, in that directors’ duties will generally no longer apply once they cease to be a director, there are, however, a few instances whereby directors may still find themselves liable even after stepping down.
Can I even resign?
The Supreme Court has handed down a judgment which will be greeted with a collective sigh of relief from the insolvency world. In R (on the application of Palmer) v Northern Derbyshire Magistrates Court [2023] UKSC 38, the Supreme Court ruled that an administrator of a company is not an “officer” of that company.
As a director of a company, the regulatory landscape in England and Wales can feel like a scary place. The possible ways a director can become exposed can feel endless – especially if one asks Google.
Just ask any corporate lawyer fortunate enough to own the tome that is the Companies Act 2006. In the absence of becoming a legal expert, what can directors practically do to best protect themselves when carrying out their role?
Restructuring plans under Part 26A of the Companies Act 2006 are a powerful tool for restructuring the debts of a company.
On the eve of trial, the Insolvency Service (IS), acting on behalf of the Secretary of State for Business and Trade, has discontinued disqualification proceedings brought in January 2021 against five former non-executive directors (NEDs) of Carillion plc. The trial, which had been listed for around 13 weeks (and originally as long as 6 months) had been due to start on Monday 16 October 2023.
Following its acquisition of the Regal cinema chain in the US in 2018, Cineworld, with its English-incorporated parent company, London premium listing and status as a household name in the UK cinema industry, became a truly transatlantic business. Add that to its businesses in Central and Eastern Europe and Israel, and Cineworld is one of the largest cinema chains in the world, operating in 10 countries with 672 sites and 8,181 screens.