Restructuring Plans: should an opposing creditor be granted security for costs? Might that open the floodgates where companies are by definition “distressed,” or was this particular Plan more akin to ordinary adversarial litigation? Read our summary below.

Following the recent conflicting decisions in HQP Corporation (in official liquidation)1(HQP) and Direct Lending Income Feeder Fund, Ltd (in official liquidation)2 (DLI), Simon Dickson and Laura Stone of Mourant Ozannes (Cayman) LLP consider whether shareholder misrepresentation claims can be admitted in a Cayman Islands liquidation.

In Davis-Jacenko v Roxy’s Bootcamp Pty Limited [2024] NSWSC 702, McGrath J delivered an extempore decision, appointing provisional liquidators in respect of Roxy’s Bootcamp Pty Limited (theCompany). His Honour stated that it was “a paradigm case” for the court to intervene to preserve the status quo.

Key Takeaways

Unsere Blog-Serie führt durch die verschiedenen Phasen einer Umstrukturierung und beantwortet damit verbundene Fragen – auch abseits juristischer Themen.

In the recent decision Sian Participation v Halimeda (Sian), the Judicial Committee of the Privy Council (the Privy Council) held on a BVI appeal that a winding-up petition should not be stayed or dismissed merely because the underlying debt is subject to a generally-worded arbitration agreement.

On 11 June 2024, the judgment of Re BHS Group Limited (In Liquidation) (BHS) was handed down by Leech J in the English High Court, bringing in key developments and clarifications on directors duties in the zone of insolvency.

This is especially relevant in offshore jurisdictions such as Guernsey where English insolvency legislation is often replicated in local legislation. English common law remains highly persuasive in relation to directors duties and claims by liquidators against former directors are relatively common.

Summary of claims

In September 2022, a far-reaching reform of insolvency law came into force by virtue of Law 16/2022, of 5 September, on the reform of the consolidated text of the Insolvency Law (hereinafter ‘TRLC’).

Alice Eaton and Sean Mitchell Discuss Paul, Weiss’s Restructuring

Practice in Vault Q&A

Alice and Sean describe the breadth of Paul, Weiss’s Restructuring

practice and what sets the practice apart in a Q&A in the 2024 edition

of “Practice Perspectives: Vault’s Guide to Legal Practice Areas.”

Elizabeth McColm and Sean Mitchell Publish “USA” Chapter in

ICLG – Restructuring & Insolvency 2024

In the latest ICLG – Restructuring & Insolvency Laws & Regulations,

Elizabeth and Sean discuss common issues in restructurings and

This article originally appeared in The Bankruptcy Strategist.

To file bankruptcy in the U.S., a debtor must reside in, have a domicile or a place of business in, or have property in the United States. 11 U.S.C. §109(a). In cross border Chapter 15 cases, courts have considered if a foreign debtor must satisfy that jurisdictional test.

In Mitchell and others v Al Jaber; Al Jaber and others v JJW Ltd [2024] EWCA Civ 423 the Court of Appeal has confirmed that a director remained subject to a continuing fiduciary duty post liquidation when purporting to transfer assets owned by that company, on the basis he was an “intermeddler”. While the case concerned a BVI company, the court’s decision was based on English-law authorities and therefore has wider significance.

Facts