Times are changing rapidly with the current flow of Coronavirus measures introduced to support businesses in debt and distress.
We take a look at what creditors can (and can’t) do to help better protect their position.
I’m owed money. What can I do?
Certain recent government measures may impede your ability to take recovery or enforcement action at the present time. The good news is that many avenues remain available.
You cannot (in some cases):
Over the past few weeks, the UK government, regulators and other bodies have moved to help businesses navigate the unprecedented disruption caused by the COVID-19 pandemic. We start this briefing with a round-up of key changes in the areas of company law and corporate finance regulation.
Filing accounts
What is a debt-restructuring moratorium?
Since 20 April 2020, both the judicial and debt collection pauses have ended. The legal standstill decreed by the Swiss Federal Council in accordance with Art. 62 of the Debt Enforcement and Bankruptcy Act (DEBA) has thus expired. For a business that, despite the emergency aid provided by the Swiss government and the cantons, is still unable to meet its obligations (immediately) but wishes to continue its business activities, the question arises as to how it can obtain creditor protection.
Myanmar’s legal system is governed by both old and new laws and regulations, as well as internal policies and practices of the Myanmar authorities. Many laws dating back to the colonial period and post-independence period are, with certain changes, still in force. Since its political and economic opening in 2011, Myanmar has embarked on a comprehensive reform process and is currently overhauling its legal framework. Existing laws were revised or replaced, and new laws enacted.
Considerations for Distressed Transactions
In a recent decision 9354-9186 Québec inc. v. Callidius Capital Corp, 2020 SCC 10 , the Supreme Court of Canada affirmed that:
The Singapore legal system is historically based on English law, with an ever increasing local jurisprudence. A strict application of the rule of law, up-to-date regulations and legal instruments and fast-reacting legal institutions make Singapore a popular legal hub for the region.
Considerations for Distressed Transactions
Clean Sales
If a company is already trading insolvent or is on the brink of insolvency, certain provisions may jeopardise a “clean sale”, such as:
Background: Financial Backdrop
The Stats
The Government has published the COVID-19 Response (Further Management Measures) Legislation Bill (the Bill), an omnibus bill containing amendments (both temporary and permanent) to several acts. These amendments aim to both assist organisations in effectively managing the “immediate impacts of the response to COVID-19”, as well as mitigating some of the pandemic’s “unnecessary and potentially longer-term impacts on society”.
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The COVID-19 pandemic is posing the biggest existential threat to commercial entities in a generation. Companies across the globe are getting to grips with multiple operational challenges and many are rightly concerned about their business continuity and restructuring options should the pressure begin to become insurmountable.
Die aktuelle Corona-Krise eröffnet Wettbewerbern und Investoren Opportunitäten zum Kauf von Betrieben in finanziellen Schwierigkeiten. Während Betriebe oder Betriebsteile zu einem attraktiven Preis erworben werden können, bergen solche Transaktionen jedoch im Gegenzug verschiedene rechtliche Risiken.