Mareva orders, also known as freezing orders, may be granted when there is a risk that a defendant might move its assets out of reach of the court’s jurisdiction. Mareva can orders freeze assets owned directly or indirectly by the defendants. Oftentimes a defendant subject to a freezing order has other creditors seeking repayment. Can a creditor enforce its claim against the frozen assets? Yes, but the creditor must come to the court with clean hands and should not make loans to the defendant if it has notice of the order.
In the current market, investors are increasingly considering their options in relation to the stressed and distressed credits in their portfolios. Whilst mindful of stakeholder relationships, secured lenders may, in some circumstances, wish to consider the "nuclear option": enforcing their share pledge over a holding company of the operating group (ideally, such pledge being over a single company which directly or indirectly holds the entire business - a "single point of enforcement").
Serving as the stalking horse bidder in a Section 363 sale1 can provide a buyer with financial and legal protections, as well as better position the buyer to ultimately acquire the debtor's assets.
General Overview
MONTHLY NEWSLETTER SERIES MARCH, 2024 | VOL. X VAISH ASSOCIATES ADVOCATES LEGALAXY WWW.VAISHLAW.COM LEGAL MAXIM Delegatus non potest delegare: ‘A delegate cannot further delegate’ MONTHLY NEWSLETTER SERIES MARCH, 2024 | VOL.
The original version of this article was first published in the Trilegal Quarterly Roundup
New Zealand’s economy, like many others, has been significantly impacted by global events such as the COVID-19 pandemic hangover (inflation, supply chain shocks and high interest rates). These events have led to an increase in distressed M&A activity as healthy companies seek to acquire those in financial distress. Distressed M&A is not without its challenges. The uncertainty of the distressed company’s true value, potential liabilities, and the risk of subsequent insolvency proceedings can deter potential acquirers.
This overview includes case law since mid-2022 and provides an overview of legal amendments that have a practical impact on national and international contracts.
Insolvency-based rescission clauses
Há algum tempo o Brasil tem sido o maior receptor de investimento estrangeiro direto na América Latina devido ao seu tamanho (7ª maior economia e 2ª maior população do hemisfério ocidental), a sua riqueza de recursos naturais e relativa estabilidade política. A maioria dos investimentos no Brasil proporciona aos investidores um retorno atraente. O paíspode apresentar desafios para os investidores, especialmente os que não estão familiarizados com os desafios do “custo brasil” (ou seja, o alto custo para fazer negócios no Brasil) ou seu ambiente de negócios único.
Brazil has been the single largest recipient of foreign direct investment in Latin America for some time due to its size (7th largest economy and 2nd biggest population in the western hemisphere), its wealth of natural resources, and relative political stability. Most investments in Brazil provide investors with an attractive return, but some do not. Brazil can present challenges for investors, especially those not familiar with the challenges of “custo brasil” (i.e., high cost of doing business in Brazil) or its unique business environment.
In Re Tucker, Quintis Leasing Pty Ltd [2023] FCA 1673, the administrators of a company successfully obtained orders from the Federal Court modifying the operation of section 443B of the Corporations Act 2001 (Cth).