An analysis of recent statistics show what the Insolvency and Tax Disputes teams at Mishcon de Reya have long experienced – that HMRC is not in the habit of overlooking an outstanding debt.

This article, part of our Creditor’s Rights Toolkit [link] series, serves as an essential guide for vendors navigating the complex landscape of dealing with financially distressed or bankrupt customers. It provides a detailed exploration of the options available to vendors who are proactive and quick to act when they learn of their customer’s financial woes.

Last month, online supermarket Supie went into voluntary administration, owing $2.1 million to more than 4,000 creditors with only $179,000 left in the bank. 118 employees of Supie found out not only that they had lost their jobs, but that it was unlikely they would be paid for their last 2 weeks of work, or for any outstanding holiday pay.

Thanks to an anonymous donor, some wages were able to be paid out. However, the first liquidators report shows that $120,797 in wages and holiday pay is still outstanding to 89 employees. So, what are employees of a failed company entitled to?

The Companies (Amendment) Bill 2023 (“Bill”) was passed by the Dewan Rakyat (House of Representatives) of the Malaysian Parliament on 28 November 2023. It will be tabled before the Dewan Negara (Senate) and if passed, will be presented for Royal Assent and be gazetted into law.

Introducción

En las píldoras concursales de este mes destacamos:

Recent news reports have highlighted that the number of corporate insolvencies has continued to rise during 2022 and 2023, with the retail sector being particularly affected. Many companies are struggling to meet the demands of repaying government support provided during lockdown, increased running costs and high wages coupled with lower demand due to the cost of living crisis.

When an employer is insolvent and administrators appointed, job losses are often an inevitable consequence. In this blog we look at the legal obligations arising where redundancies meet the threshold for collective consultation, and the implications for administrators arising out of the recent Supreme Court in the case of R (on the application of Palmer) v Northern Derbyshire Magistrates Court and another.

When does the legal obligation to collectively consult apply?

Peter Bowden heads Gilbert + Tobin’s Restructuring + Insolvency group.

He specialises in front-end restructuring and insolvency and has significant experience advising hedge funds, banks, special situations groups, investment banks, insolvency practitioners, creditors and debtors on all elements of restructuring, insolvency, liability management, workouts, banking and distressed debt transactions in a range of industries including financial services, energy, mining, mining services, property, construction, agriculture and manufacturing.

Our review of 2023 brings you right up-to-date with the latest developments in restructuring and insolvency law in Hong Kong and the mainland.

2023 saw mixed messages for holders of offshore bonds issued by Chinese issuers hoping to enforce on the mainland, good news for lenders benefitting from “hybrid” jurisdiction clauses and a degree of uncertainty being seen in the Hong Kong courts as to whether an agreement to arbitrate should always take precedence over a winding up petition, particularly where cross-claims are involved.

Abigal Boura v Lyhfl decision

1. The High Court considered whether one director has standing to apply to court for the appointment of an administrator in circumstances where there is no majority of the board and no valid resolution of the board in favour of the application. Abigal Boura v Lyhfl Limited [2023] EWHC 2585 (Ch)(19 October 2023).

Analysis