As the chill of recession bites for homes and businesses alike, SMEs are faced with the daunting prospect of navigating their way through the bleak mid-winter. In October 2022, inflation reached 11.1% and company insolvencies were 38% higher than the same period last year. Creditors’ voluntary liquidations in the same period were 53% higher than in 2019 (i.e. pre-pandemic), continuing the theme of businesses being forced to consider this terminal insolvency process, as following the pandemic they have struggled to adapt to the challenging market conditions.
Walkers acted as Cayman Islands counsel to Oriente Group Limited (the "Company”) in respect of its successful petition for the appointment of Mr Kenneth Fung of FTI Consulting (Hong Kong) Limited, Mr Andrew Morrison and Mr David Griffin of FTI Consulting (Cayman) Ltd as joint restructuring officers (the "Joint Restructuring Officers") pursuant to Section 91B of the Cayman Islands Companies Act (as amended), being the first petition under the new restructuring officer regime, which came into force on 31 August 2022.
These are unprecedented times for businesses trying to manage the challenging impact of inflation, labour shortages, supply interruptions, elections, fires, floods, wars and a pandemic. It is more important than ever to manage working capital, mitigate risk and monetise assets.
The Probuild and Virgin Australia administrations confirm that virtual meetings in external administrations are now an integral part of insolvency in a post-pandemic world. Although recent changes to the Insolvency Practice Rules (Corporations) 2016 (Cth) (IPR) provide greater flexibility, there are aspects that insolvency practitioners need to consider and Court directions may be necessary.
The Autumn budget will have done little to ease the concerns of companies facing significant trading pressures as the country tries to get back on its feet following the pandemic, the ongoing effects of Brexit, the Ukraine conflict and the current cost of living crisis. Inflation has now topped its forecasted peak at 11.1%; there are soaring energy prices and the UK is now officially in recession.
In the matter of Mediacloud Pty Ltd (Administrators Appointed) [2021] NSWSC 357 the New South Wales Supreme Court demonstrated its wide discretionary power. The decision extended the period of administration of a company to avoid it being automatically wound up for failing to execute a deed of company arrangement within the required time. This, in effect, permitted the administrators to ‘re-do’ a second meeting of creditors, enabling the creditors to decide the company’s future again.
Med stigande elkostnader och höjda räntor är det många företag som den senaste tiden fått ställa om. Bland annat har konkursansökningarna drastiskt ökat de senaste månaderna. Som att lagstiftaren förutsåg att dessa tuffare tider skulle komma trädde en ny lag om företagsrekonstruktion i kraft den 1 augusti i år. De nya lagreglerna innehåller inte bara nya regler för hur rekonstruktioner ska gå till utan även bestämmelser som rör varaktiga avtal – så som hyresavtal. Men vad är det som gäller och vad innebär ändringarna för hyresvärdar?
Liquidators generally have the power to assign causes of action belonging to a company, or claims conferred on the liquidator by the Corporations Act 2001 (Cth) (Act). However, a liquidator’s power to sell or assign causes of action has certain limitations which were considered in Anderson v Canaccord Genuity Financial Limited [2022] NSWSC 58 (Anderson Judgment).
Kunderne efterspørger længere kredittider. Virksomhederne har fokus på at nedbringe varelagre og styrke deres likviditet. Og stort set alle brancher er påvirket af den usikkerhed, der er opstået i et marked med øgede energipriser, mangel på materialer, stigende råvarepriser og lange transporttider. En analyse fra SMV Danmark viser, at antallet af konkurser var rekordstort i oktober – og højere end på noget tidspunkt under finanskrisen i 2008.