The Indian Supreme Court holds in Ebix[1] that once a Resolution Plan has been approved by the Committee of Creditors (CoC),it cannot be withdrawn by the Successful Resolution Applicant(“SRA”). It comes to this conclusion by holding that principle applicable under common law or the contract act, viz frustration or force majeure, are not available to the SRA under the Insolvency and Bankruptcy Code (“Code”) regime.
The challenges faced by the construction industry are continuing to grow and insiders wonder when the storm is going to hit. For some, like Probuild, it already has. Rising inflation and the increasing cost of debt, labour shortages, supply chain delays and escalating cost of freight and materials are putting the industry under enormous pressure. Simultaneously Governments have invested heavily in building and construction to maintain growth in the economy.
HERBERT SMITH FREEHILLS
Pension Disputes Bulletin
Welcome to the latest edition of our regular pension disputes bulletin. In these bulletins we report on key cases, Ombudsman decisions and regulatory activity and we highlight emerging risks for pension schemes, providers, sponsors, administrators and other service providers.
In a hurry? In a hurry? Read the `Risk warning', `Takeaways' and `Comment' boxes to find out the key risks, points to note and to read our observations on each case/ development.
MAY 2022
The appointment of voluntary administrators to Probuild in March 2022 sent shockwaves through the construction industry. External administrations of other recognised brands such as Grocon, ABD Group, Privium and Condev have also caught media attention. Overall, external administrations in the construction industry have been increasing, notwithstanding that the insolvency numbers generally have declined to historical 20-year lows. The insolvency of each builder impacts numerous parties including developers, principals, sub-contractors, suppliers, consultants and employees.
In In re Squirrels Rsch. Labs, LLC, No. 21-61491, 2022 WL 1310173, at *1 (Bankr. N.D. Ohio Apr. 29, 2022), the United States Bankruptcy Court for the Northern District of Ohio recently addressed whether post-sale of the debtors’ assets, a creditor could conduct discovery to investigate the extent of a secured creditor’s liens in order to amend the distribution of the sale proceeds. Under the facts of this case, the bankruptcy court denied the creditor’s request.
Introduction
The National Security Investment Act 2021 (the “Act”) came into effect on 4 January 2022 and introduced a new UK investment screening regime focused on national security risks (the “NSI Regime”). It is similar to the Committee on Foreign Investment in the United States (“CFIUS”) regime. The Act is wide reaching; it provides the UK government with the power to review and intervene in transactions that may pose a UK national security risk due to a transfer of control of sensitive entities or assets.
Vigilantibus, et non dormientibus, jura subveniunt is a noted maxim which means ‘the laws assist those who are vigilant, not those who sleep over their rights‘ . This is a pertinent principle which applies predominantly while determining if a particular cause of action has been espoused within the limitation period.
“Retail apocalypse” was the phrase coined to describe the anticipated demise of the brick-and-mortar retail store in the face of the unparalleled convenience of online shopping and other electronic commerce. Over the past decade, in response to the challenges faced by the changing retail landscape, many shopping centres tried to “e-proof” their properties by emphasizing in-person experiences that can be provided through salons, arcades, movie theatres and restaurants.
A director has been found liable in the High Court for fraudulent trading as a result of failing to carry out proper due diligence in a series of transactions which were found to be part of a VAT fraud scheme.
The claim was brought against the director by the Liquidator of JD Group Limited (the “Company”).
Background