On 24 September 2020, the European Commission (the Commission) relaunched its Capital Markets Union project with the publication of its ambitious new initiative,"A Capital Markets Union for people and businesses – new action plan" (the Action Plan). The purpose of the Action Plan is to reduce the current fragmented approach in financial markets and to tackle some of the remaining barriers to a single European capital market.
When a business becomes insolvent, all of the creditors of the business are at risk, including its landlords. As COVID-19 continues to challenge businesses in Ireland and abroad, two recent decisions of Mr Justice McDonald in the High Court offer a timely reminder of the standards which tenants must meet when seeking to compromise their commercial lease obligations and the importance of procedural fairness for landlords affected by tenant insolvency.
The New Look case1
The COVID-19 pandemic together with Brexit have meant many commercial relationships have had to stop or risk having to do so in the future. Are you ready to deal with what happens if any of your key contracts terminate?
No contract is 100% ‘Brexit-proof’. The current uncertainty about whether there will or won’t be a trade deal with the EU makes it unclear what contracts will be profitable and which won’t in 2021. For many businesses, some of their contractual relationships may well become untenable in the period after 11pm on 31 December 2020.
The Australian government has taken swift action to enact new legislation that significantly changes the insolvency laws relevant to all business as a result of the ongoing developments related to COVID-19.
Recent months have brought unprecedented challenges to businesses, with no sector immune to the economic repercussions of the pandemic. Yet despite headline news of certain high-profile restructurings and insolvencies, such as Virgin Atlantic, Debenhams, and Edinburgh Woollen Mill, it seems the emergency measures implemented by the UK Government have, to a degree, staved off wide spread economic collapse that may otherwise have been inevitable.
Ongoing uncertainties about the COVID-19 pandemic, coupled with the looming deadline of Brexit, mean businesses and owners are in for a tough ride over the next few months, possibly much longer if the UK continues to face restrictions.
Recent M&A deals the teams have worked on involving insolvent corporates have highlighted the challenges which exist around the transfer of customer lists and databases, which are often a significant asset for the buyer.
The Australian government has taken swift action to enact new legislation that significantly changes the insolvency laws relevant to all business as a result of the ongoing developments related to COVID-19.
1. What is distressed M&A?
This note considers how the recent changes to UK insolvency law introduced by the Corporate Insolvency and Governance Act 2020 ("CIGA") might affect those involved in the sale and purchase of commodities. In particular, it looks at the impact of Section 14 of CIGA on contracts for the supply of goods or services, and on the typical rights and remedies of the seller / supplier under such contracts.