Executive Summary
The recent case of Dingley and others v Nisa Retail Ltd (Re MKG Convenience Ltd (in liquidation)) [2019] EWHC 1383 (Ch) demonstrates three interesting facets of section 127 of the Insolvency Act 1986:
1 That it is still very difficult to avoid the implications of S127 in relation to any disposition, whether by payment from a bank account, transfer of assets or other transactions such as the issue of credit notes with a validation order;
2 that direct debts are not excluded in any way; and
Reliance Wholesale Ltd v AM2PM Feltham Ltd [2019]
In the recent case of Reliance Wholesale Ltd v AM2PM Feltham Ltd, the High Court provided some much needed guidance and clarification as to how the Court should approach the issues of costs
when a petition debt is dismissed following a payment in full being made by the debtor company, even when such a payment is made ‘under protest’ with no admission of liability as to the petition debt.
Background
Judgment of Kerr J. in Stockport Metropolitan Borough Council v Punj Lloyd Limited [2018] EWHC 3776
L’affaire Cambridge Analytica aura au moins permis de faire progresser le droit : un tribunal anglais estime que l’administrateur d’une société n’est pas, en règle, coresponsable de traitement avec la société dont il a la charge, et que la liquidation n’y change rien.
Cambridge Analytica ?
L’affaire Cambridge Analytica (autrement appelée affaire Facebook) fut, en 2018, un scandale mondial.
Asset-backed or net asset value (NAV) facilities as a feature of the fund finance landscape are not new, but their prevalence and uses have increased over the last five years in particular.
The U.K. government is proposing to reintroduce preferential status to certain taxes in U.K. insolvencies beginning 6 April 2020. If enacted:
- certain taxes owed to HM Revenue & Customs (HMRC) would rank ahead of floating charges in U.K. insolvencies;
- the legislation would be retroactive, applying to such tax liabilities incurred at any time prior to insolvency; and
- it is likely to have a significant impact on asset-based loans (ABLs) involving U.K. obligors.
Introduction
A recent judgment has clarified the duty of receivers when selling secured property to a company connected to a creditor.
Background
The claimant alleged that the receivers, appointed on behalf of, and selling to a party connected to the creditor, had acted in bad faith. They had placed themselves in a position of conflict and had engaged in self-dealing. As well as dealing with this issue, the court also assessed where the burden of proof lies when allegations of failing to act in good faith are raised.
Held
Pantiles Investments Limited & Anor v Winckler [2019] EWHC 1298 (Ch)
Background
The Liquidator of the Pantiles Investments Limited (Company) brought a claim (among others) for fraudulent trading against its former director, Ms Winckler. The claim related to a property transaction involving Ms Winkler, an associate (Mr Goldbart) and the Company. In summary, the transaction was as follows:
Failures rates in franchising are typically much lower than non-franchised start-ups. However, the latest British Franchise Association/NatWest survey of the UK franchising sector cites franchisee underperformance as one of the three key concerns of franchisors, and franchise businesses are of course not immune from the economic headwinds and technological changes which are affecting various sectors.
A creditor who has a monetary judgment against a debtor (“the judgment debtor”) can obtain an order from the Court directing that an identified third-party (“the garnishee”) who owes money to the judgment debtor instead pay the money it owes to the judgment creditor, in full/ partial discharge of the judgment debt.