UPDATED 3 AUGUST 2020
Updates marked with *
Updated: Ireland, Israel
We take a look at some of the recent emergency legislation and measures implemented by various nations around the world in response to COVID-19. As this is a rapidly developing crisis, please ensure you keep a close eye on the Lexology Coronavirus hub page for the most up-to-date information.
Der Zusammenhalt und die Zukunft der Europäischen Union auf dem Prüfstand
EDITORIAL by John Kimbell QC
Welcome to the first edition of Aviation News!
These are challenging and uncertain times for the aviation world. Covid-19 has temporarily grounded large numbers of commercial aircraft and rumours of airline insolvency abound as pictures of empty airports regularly appear in the press. Against this background, Thomas Macey-Dare QC considers the impact of airline insolvency on slot allocation and Mark Stiggelbout and Emily McWilliams discuss the potential impact of force majeure and frustration arguments based on the pandemic.
One of the most powerful tools for insolvency practitioners when investigating the affairs of an insolvent company where wrongdoing is suspected is section 236 of the Insolvency Act 1986 (“IA 1986”). This confers power on English courts to order certain categories of parties to produce documents and an account of dealings relating to companies being wound up in the UK.
Different countries frame the exact description of the role of directors of a company in different terms. One feature is common to all – the obligation not to continue trading if a company is insolvent. Again, the detailed implications of doing so vary from one jurisdiction to another. However, this obligation not to continue wrongful trading is at the heart of trust in a market-based economic system.
At our webinar on 2 July 2020 we examined the impact of the CIGA for corporates engaged with third parties who might enter into an insolvency process.
We have put together this question and answer sheet responding to the questions raised which, together with our quick guides, will help corporates understand the issues and challenges that the new processes and procedures could pose.
In light of these changes and looking towards how trading
What is the impact on standard termination clauses, which are triggered by an insolvency event?
The Corporate Insolvency and Governance Act received royal assent on 25 June 2020 and comes into force immediately.
The Act introduces a range of new corporate restructuring tools and suspends, temporarily, parts of the existing insolvency regime. The purpose of this note is to update you on two key aspects of the Act: the moratorium on legal action and the temporary changes in relation to statutory demands and winding-up petitions.
Moratorium on legal action
On 17 April 2020 the Supreme Court handed down an important interim judgment concerning the pre-pack bankruptcy of Heiploeg. In this judgment, the Supreme Court holds that the rules on the Transfer of Undertakings (as explained further below) do not apply to a restart following bankruptcy. In addition, the Supreme Court holds that the rules on the Transfer of Undertakings do not always apply in the case of a restart that has been prepared by means of a pre-pack. The Supreme Court takes the view that in the pre-pack bankruptcy of Heiploeg these rules do not apply.
The Corporate Insolvency and Governance Act (the ‘CIGA’), which came into force on 26 June 2020, introduces the most significant changes to English insolvency law in a generation. In this article, we explore those changes in a ‘question and answer’ format.
At a glance – what has changed?
The CIGA has introduced permanent changes to English legislation that will ensure that England & Wales remains at the forefront of the global restructuring market. These measures are: