La justicia europea se pronuncia sobre la aplicación de las garantías laborales en la transmisión de empresas cuando cedente y cesionario prevén la posterior desaparición del cesionario por liquidación. Nada impide segregar una parte de la empresa y posibilitar su autonomía, pero mantener la dependencia y provocar su quiebra resulta contrario al principio de estabilidad que rige el transfondo laboral de toda transmisión empresarial.
Background
With cov-lite financings at record highs, debt holders will need to be proactive in maximising recoveries
Will the last person leaving please turn out the lites?
Cov-lite loans can leave lenders with limited restructuring options, but creative lenders will still find ways to bring debtors to the table, partners Ian Wallace and Christian Pilkington of global law firm White & Case LLP explain
The Insolvency Working Group of the United Nations Commission on International Trade Law (“UNCITRAL”)1 has been busy this past year, working on three new model laws and developing work on at least two possible future projects.2 The Insolvency Working Group is responsible for drafting the Model Law on Cross-Border Insolvency (the “CBI Model Law”) in 1997, which has since been adopted in 46 countries and is under consideration in several others. In 2005, the United States adopted the CBI Model Law as Chapter 15 of the United States Bankruptcy Code.
1. Introduction
At the European Union level, the cross-border proceedings benefit under EU Regulation 848/2015 from a unitary framework who general declared purpose is to ensure the optimal functioning of the internal market. To this end, there are a series of rules and principles intended to prevent the transfer of assets or judicial proceedings from one member state to another in the attempt to obtain a more favorable legal situation to the detriment of the creditors’ list.
There has been an influx of company voluntary arrangements (“CVAs”) in recent times, as retailers fight to rescue their UK high street stores. Retail CVAs accounts for the highest proportion of CVAs at 19%. As more and more CVAs are approved, we consider some of the recent trends seen in the retail sector which showcase the flexibility of a CVA and reflect the demands of landlords whose support is vital to the continuing viability of a business.
What is a CVA?
The list of successful restructurings outside insolvency proceedings is as long as it is confidential. Every year, companies of all sizes are stabilised and sustainably restructured without the stigma of insolvency proceedings. However, until now there has been no European legal framework for pre-insolvency restructurings and only a few national laws explicitly provide for the possibility of such preventive restructurings. This will change now.
Persisting political and economic uncertainty means awareness of market changes remains crucial.
The 2008 distress cycle triggered defaults and restructurings for European PE portfolio companies, as maintenance covenant defaults and balance sheet deleveraging forced refinancings and debt-for-equity swaps. While restructuring conditions for PE firms are stronger in 2019 than they were in 2008, persisting political and economic uncertainty means that awareness of market developments remains important.