The October 2023 insolvency statistics show that company insolvencies have risen by 17.6% from October 2022 to October 2023 and by 56.7% since pre-pandemic levels in October 2019. Total insolvencies have reached the highest levels since 2009.
The Court heard argument in the case on December 4, 2023.
Third-Party Releases in Chapter 11 Plans
The English High Court has clarified the test it will apply on an application for a moratorium. A company can get the benefit of a moratorium without applying to court but a court application is necessary if a winding up petition has already been presented or the company is an overseas company.
Background
A debtor's non-exempt assets (and even the debtor's entire business) are commonly sold during the course of a bankruptcy case by the trustee or a chapter 11 debtor-in-possession ("DIP") as a means of augmenting the bankruptcy estate for the benefit of stakeholders or to fund distributions under, or implement, a chapter 9, 11, 12, or 13 plan.
On 30 November the Supreme Court delivered its written judgment dealing with the correct test for insolvency when considering the eligibility of a debtor for a Personal Insolvency Arrangement (PIA) under the Personal Insolvency Act 2012 (as amended).
Background
One of the qualifying criteria for a PIA is that the debtor must demonstrate that the debtor is “insolvent” within the meaning of section 2(1) of the Personal Insolvency Act 2012. That provision defines the term as meaning “that the debtor is unable to pay his or her debts in full as they fall due”.
This article will look at the recent decision of David Doyle J in In the Matter of HQP Corporation Limited (in Official Liquidation) (7 July 2023) and its effect on the ability of investors to recover damages from a company in which they have acquired shares as a result of a fraudulent misrepresentation.
Introduction
The case involved an application by liquidators for direction in relation to three issues in the winding up of the Company:
1. INTRODUCTION
On 9 November 2023, a three-judge bench of the Hon’ble Supreme Court comprising of the Hon’ble Chief Justice of India DY Chandrachud, Justice JB Pardiwala and Justice Manoj Misra, while disposing off over 350 writ petitions, in Dilip B. Jiwarajka v. Union of India and Ors. 1 , upheld the constitutional validity of several key provisions [Section 95 to Section 100] of the Insolvency and Bankruptcy Code, 2016 (Code) pertaining to the insolvency resolution process for individuals and partnership firms.
On December 6, 2023, the Supreme Court of Canada heard the appeal of Poonian v British Columbia Securities Commission, 2022 B
Key developments of interest over the last month include: IOSCO publishing its final Policy Recommendations for Crypto and Digital Asset (CDA) Markets; the UK government publishing a response to its previous consultation and call for evidence on proposals for the future financial services regulatory regime for digital assets as well as the FCA and Bank of England publishing proposals on the UK stablecoins regulatory regime; the European Parliament's ECON Committee publishing draft reports on the proposed PSD3 and Payment Services Regulation; and the UK government publishing a Future of Paym
The Supreme Court recently considered whether administrators of a company can be prosecuted for a failure to provide notice to the Secretary of State, using form HR1, of proposed collective redundancies.
They found that for the purposes of interpreting the relevant section of the Trade Union and Labour Relations (Consolidation) Act 1992 ("TULRCA"), administrators were not an "officer" and so were not subject to the obligation to file an HR1. This decision, however, has the potential to impact much wider than the world of redundancies.