High Court orders the liquidation of CBL Insurance
The European Preventive Restructuring Framework offers different ways to help companies impacted by COVID-19. Here’s what you need to know.
In brief
The COVID-19 pandemic has led to four groups of companies emerging, each with different needs for restructuring. The new European framework may prove helpful for those companies who cannot currently cover debts, but who don’t have an acute liquidity problem. Financial restructuring may be the best option to allow companies with valid business models to return to profitability.
As the volume of high-profile bankruptcies continues to climb, companies are now in the process of seeking to amend and re-negotiate their credit agreements, or finding new sources of financing in efforts to avoid bankruptcy.
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
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
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
- Introduction
Under Hong Kong law, a company shall be deemed to be unable to pay its debts if a creditor, to whom the company is indebted of at least HKD 10,000 (around USD 1,290), has served on the company a demand requiring the company to pay and the company has not done so within three weeks.
While the COVID-19 pandemic has wreaked havoc on the global economic marketplace, not all concerns are immediately visible - such as bankruptcy impacting a business’s intellectual property.
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.