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    Commercial Real Estate Woes: WeWork'd its way into bankruptcy
    2023-11-07

    As reported by multiple news media outlets, WeWork sought bankruptcy court protection on November 6, 2023, in New Jersey while it reorganizes its debts. One of the driving forces of the bankruptcy is disclosed to be its heavy commercial lease burden, with roughly 69 of its leases on the immediate chopping block.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Real Estate, Thompson Coburn LLP
    Authors:
    Katharine Clark
    Location:
    USA
    Firm:
    Thompson Coburn LLP
    Denying Arbitration Of Legal Malpractice Case In Bankruptcy (Murray Energy Holdings)
    2023-11-07

    Bankruptcy Court denies a party’s request to enforce arbitration of a legal malpractice claim—and then dismisses that malpractice claim for failure to state a claim.

    The opinion is Murray v. Willkie Farr & Gallagher LLP (In re Murray Energy Holdings Co.), Adv. Pro. No. 22-2007, Southern Ohio Bankruptcy Court (decided October 5, 2023, Doc. 89)—appeal is pending.

    Context

    Filed under:
    USA, Nebraska, Arbitration & ADR, Insolvency & Restructuring, Litigation, Koley Jessen PC, Federal Arbitration Act 1926 (USA), Supreme Court of the United States
    Authors:
    Donald L. Swanson
    Location:
    USA
    Firm:
    Koley Jessen PC
    No criminal liability for administrator for failure to make statutory redundancy notification
    2023-11-03

    The Supreme Court has handed down a judgment which will be greeted with a collective sigh of relief from the insolvency world. In R (on the application of Palmer) v Northern Derbyshire Magistrates Court [2023] UKSC 38, the Supreme Court ruled that an administrator of a company is not an “officer” of that company.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Freshfields Bruckhaus Deringer, Companies Act 2006 (UK), Supreme Court of the United States, UK Supreme Court
    Authors:
    Harriet Gaillard , Katharina Crinson
    Location:
    United Kingdom
    Firm:
    Freshfields Bruckhaus Deringer
    The new EU Reorganisation Act
    2023-11-03

    The EU Reorganisation Act (EU UmgrG) came into force on 1 August 2023. However, the EU Reorganisation Act does not fundamentally change Austrian reorganisation law. The previous legal system was only changed to the extent necessary to implement Directive (EU) 2019/2121 ("Mobility Directive").

    Area of application

    Filed under:
    Austria, European Union, Corporate Finance/M&A, Insolvency & Restructuring, Fellner Wratzfeld & Partner
    Authors:
    Peter Stie­g­ler
    Location:
    Austria, European Union
    Firm:
    Fellner Wratzfeld & Partner
    Due diligence of resolution applicants by resolution professionals: Mere reliance on an affidavit is not enough to check ineligibility under Section 29A of the IBC
    2023-11-03

    In an application filed by Vishram Narayan Panchpor, resolution professional of Blue Frog Media Private Limited (“Corporate Debtor”) in the matter of M/s Blue Frog Media Private Limited1 for approval of a resolution plan, the Mumbai bench of the National Company Law Tribunal (“NCLT Mumbai”) ruled that the object of Section 29A of the Insolvency and Bankruptcy Code, 2016 (“IBC”) requires a resolution professional to conduct adequate due diligence on a prospective resolution applicant and its related parti

    Filed under:
    India, Company & Commercial, Insolvency & Restructuring, Litigation, JSA, Due diligence, Insolvency, Insolvency and Bankruptcy Code (India), National Company Law Tribunal
    Authors:
    Aashit Shah , Aayush Suneja , Adrika Bisen
    Location:
    India
    Firm:
    JSA
    Dubai's new debt law: how proving financial hardship can prevent imprisonment
    2023-11-04

    In Dubai civil cases, if someone proves they cannot pay what the court ordered, they will normally avoid facing an arrest warrant, the emirate's highest judicial body has said.

    Creditors need to demonstrate that the person who owes the money has sufficient funds to pay the debt before the court can issue an arrest warrant for unpaid dues.

    Filed under:
    United Arab Emirates, Insolvency & Restructuring, Litigation, Hassan Elhais
    Authors:
    Dr. Hassan Elhais
    Location:
    United Arab Emirates
    Firm:
    Hassan Elhais
    (UK) HMRC and Restructuring Plans: The Next Chapter
    2023-11-06

    A thorny question facing a company when considering a Restructuring Plan is how to deal with HMRC particularly following HMRC’s opposition to recent plans.

    Creditors now have some assistance in these deliberations thanks toguidance published by HMRC setting out how they will approach discussions with companies considering a Restructuring Plan.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Tax, Squire Patton Boggs, HM Revenue and Customs (UK)
    Authors:
    Helena Clarke , Rachael Markham
    Location:
    United Kingdom
    Firm:
    Squire Patton Boggs
    Insolvency - Doctrine of election - IBC provisions can be invoked even after issuance of recovery certificates by DRT
    2023-11-06

    The Supreme Court has held that the ‘doctrine of election’, stemming out of the law of evidence that bars prosecution of the same right in two different fora based on the same cause of action, cannot be applied to prevent a financial creditor from approaching the adjudicating authority for initiation of Corporate Insolvency Resolution Process against a corporate debtor.

    Filed under:
    India, Insolvency & Restructuring, Litigation, Lakshmikumaran & Sridharan Attorneys, Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 (India)
    Location:
    India
    Firm:
    Lakshmikumaran & Sridharan Attorneys
    Effective Messaging: The Key to Success in Restructuring
    2023-11-06

    Amid high interest rates and economic uncertainty, it is not surprising that corporate restructurings are on the rise. In fact, restructuring activity in the first half of 2023 more than doubled from the corresponding period in 2022.1

    Filed under:
    USA, Company & Commercial, Insolvency & Restructuring, FTI Consulting Inc
    Authors:
    Rachel Chesley
    Location:
    USA
    Firm:
    FTI Consulting Inc
    Stock Broker is a Financial Service Provider - The NCLAT ruling may offer respite
    2023-11-06

    While the Insolvency and Bankruptcy Code, 2016 (“IBC”) provides for insolvency resolution and liquidation of ‘corporate persons’, it excludes ‘financial service provider’ (“FSP(s)”) from the said provision.

    Filed under:
    India, Banking, Company & Commercial, Insolvency & Restructuring, Litigation, Cyril Amarchand Mangaldas, Liquidation, Securities and Exchange Board of India, Insolvency and Bankruptcy Code (India), National Company Law Tribunal
    Authors:
    Abhishek Mukherjee , Monil Chheda , Tushar Kumar
    Location:
    India
    Firm:
    Cyril Amarchand Mangaldas

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