Monthly Newsletter July 2024
Restructuring and Insolvency
Hospitals in the emergency room debt restructuring proceedings as a possible restructuring instrument
Josef Caleff, Olivia Wipf
Key Take-aways
1. More and more Swiss hospitals are finding themselves in situations of financial distress due to rising costs.
2. It is the duty of the board of directors as the highest management body of a hospital organized as a Swiss stock corporation to assess and, if necessary, adopt restructuring measures.
In today's rapidly evolving business landscape, businesses find themselves at the intersection of technological innovation and geopolitical and economic turbulence. Despite the increased reliance on software systems and digital infrastructure, it remains peculiar that in many EU Member States there's still no clear framework for handling software licenses in insolvency.
Introduction
On April 26, 2024, in what has been hailed as a pivotal moment for Indian aviation and insolvency law, the Delhi High Court (“High Court”) directed the Directorate General of Civil Aviation (“DGCA”) to deregister planes leased to Go First within five working days, providing much-sought after relief to the lessors of the aircraft.
In its decision of 6 May 2024, the Swiss Federal Supreme Court (SFSC) clarifies the conditions for a claimant to appeal an interim decision ordering it to provide security for the defendant’s costs due to appearing insolvent or having liquidity problems (case No. 4A_93/2024 [in German]; intended for official publication).
Ligon 158 Pty Ltd v Shield Holdings Australia Pty Ltd [2024] FCA 144
A recent decision of the Federal Court of Australia has confirmed the Court’s power to make an order suspending limitation periods applicable to claims against a deregistered company when ordering its reinstatement under s 601AH of the Corporations Act 2001 (Cth) (the Act).
La Audiencia Provincial de Barcelona se pronuncia por primera vez respecto a la impugnación de la homologación de un plan de reestructuración y desestima las demandas de impugnación interpuestas contra el Auto de homologación del plan de reestructuración presentado por la papelera J. Vilaseca, S.A.
In a groundbreaking ruling, the Court of Appeal for British Columbia recently delivered a decision that is poised to significantly influence insolvency proceedings. The case, cited as British Columbia v. Peakhill Capital Inc., 2024 BCCA 246, marks the first time an appellate court has addressed the jurisdiction and appropriateness of reverse vesting orders (RVOs) in receivership contexts. This ruling provides crucial insights into the court's reasoning and its implications for legal and non-legal professionals alike.
Background and core issue
What happens to a company at the end of an administration is a question that probably only keeps insolvency anoraks up at night.
There are a limited number of potential options, with the rescue of the company as a going concern being the number one objective to which all administrators aspire. However, more often than not, an administration will end with the company entering liquidation or, where the company has no property to permit a distribution to creditors, the dissolution of the company.
In Joint and Several Liquidators of Yes! E-Sports Asia Holdings Limited (in Liquidation) v Holman Fenwick Willan (A Firm) [2024] HKCFI 1197, the Court confirmed that solicitors should produce documents of former insolvent clients to liquidators when a request is made under section 286B(1)(d) of the Companies (Winding Up and Miscellaneous Provisions) Ordinance, Cap 32 (CWUMPO).