The UK Jurisdiction Taskforce has published a comprehensive Legal Statement on Digital Assets and English Insolvency Law.
In this article we review the key aspects relevant to Cayman Islands Insolvency Practitioners.
Introduction
The BC Court of Appeal has confirmed the jurisdiction for Canadian courts to make reverse vesting orders (“RVO”) in receivership proceedings. British Columbia v.
Building on emerging trends, 2024 has seen a continued rise in the use of equity-linked debtor-in-possession (DIP) financing in Chapter 11 cases.
Recent examples from WeWork and Enviva illustrate how stakeholders are leveraging this innovative tool to drive broader reorganization strategies and outcomes rather than as a mechanism solely providing interim financing to fund a debtor’s operations during the pendency of its bankruptcy case.
WeWork
Recent high-profile contractor collapses have made many acutely aware of the need to ensure they are adequately protected in the event of employer or contractor insolvency. This increase in insolvencies has also placed significant stress on the construction bond market. Contractor insolvencies put pressure on surety bond providers, which in turn can lead to increased rates and more stringent criteria being imposed on contractors seeking bonds.
The recent Privy Council decision in Sian Participation Corp (In Liquidation) v Halimeda International Ltd[2024] (SPC) has overturned a principle of English law relating to the interaction between a contractual agreement to arbitrate and traditional insolvency measures where a debt is said to be disputed without substantial grounds.
A recent chambers decision holding that gross overriding royalties (“GOR”) can be vested off in a reverse vesting order (“RVO”) is on its way up to the Court of Appeal of Alberta (the “ABCA”). The ABCA has granted leave to appeal Invico Diversified Income Limited Partnership v NewGrange Energy Inc, 2024 ABKB 214 (“Invico”).
The Chambers Decision
The Supreme Court in Bharti Airtel Ltd & Anr. v. Vijaykumar V. Iyer & Ors. (Civil Appeals nos. 3088-89 of 2020) clarified the law on permissibility of set-off of claims under Insolvency and Bankruptcy Code, 2016 ("The Code") at the stage of Corporate Insolvency Resolution Process ("CIRP") when the Resolution Professional ("RP") proceeds under Section 25 (2)(a) of the Code.
In 2019, the EU adopted the so-called Second Chance Directive on restructuring and insolvency. Member states were obliged to adopt and publish by 2021, but at Poland’s request, the deadline was extended by one year.
On July 2, 2024, the Hon’ble Delhi High Court (“Delhi HC”), in the case of Sanjay Dhingra vs.
In a decision delivered on 7 June 2024 (2024TALCH02/00950) (the Decision), the Luxembourg District Court provided for substantive clarifications regarding article 10 of the Luxembourg Law of 7 August 2023 on the continuation of businesses and modernisation of insolvency law (the Restructuring Law). This article empowers the Court to appoint judicial agents (mandataires de justice) in case of serious and aggravated misconduct (manquements graves et caractérisés) by the debtor or its corporate bodies, threatening the continuity of the business.