On September 14, 2010, a New York state court entered an Order of Rehabilitation for Atlantic Mutual Insurance Company and Centennial Insurance Company (collectively, "Atlantic") to try to resolve Atlantic's insolvency and return it to the marketplace. The court appointed the New York Superintendent of Insurance as the "Rehabilitator" and directed the Rehabilitator to, among other things, take possession and control of Atlantic's property, conduct Atlantic 's business, and remove the causes and conditions that made this rehabilitation proceeding necessary.
The auto parts supply industry has been beset by financial problems for several decades. Original equipment manufacturers ("OEMs") typically have the right to immediately seize their tooling, which the supplier holds in order to make parts. This allows OEMs to quickly move the tooling to another supplier and avoid an assembly line shutdown if the supplier fails. The right to immediately reclaim tooling, however, may be restricted if the supplier files for bankruptcy.
The Statutory Position:
The provisions governing the recognition of a foreign (including a UK) insolvency office holder under Jersey law are found in Article 49 of the Bankruptcy (Désastre) (Jersey) Law 1990 (the 'Law') and Article 6 of the Bankruptcy (Désastre) (Jersey) Order 2006 (the 'Order').
Nortel Networks UK Limited (the company) was a tenant under two leases. The company went into administration. The administrators occupied a small proportion of each of the premises to enable them to carry out the administration. Under the terms of both leases rent was payable quarterly in advance.
The landlord applied to the court for an order directing the administrators to pay the rent as an expense of the administration.
- Ex ParteOrders
There are a number of ethical issues facing lawyers today in bankruptcy and insolvency litigation. One of the main issues is the level of disclosure in ex parte applications, such as those for a stay of proceedings in order to file a proposal under the BIA or a plan under theCCAA.
Recovery of legal costs in insolvency proceedings can be a difficult procedure, as the ability of counsel to claim costs depends on the work performed, the timing of the work, and for whom the work was done.
In 2014, Forge Group Construction Pty (Forge) went into liquidation. Receivers were also appointed. The Forge insolvency has already been the subject of litigation in the Australian courts in respect of certain Australian PPSA issues (see our previous summary here).
The recent case of Re Armitage, ex parte Established Investments Limited (in liquidation) considered an objection by the Official Assignee to Mr Armitage's automatic discharge from bankruptcy.
The High Court in Hong Kong recently examined the circumstances in which a liquidator was able to depart from their implied duty not to disclose documents obtained from third parties under statute or in the furtherance of their legal duty.