Boris Becker was originally made bankrupt in June 2017. In the ordinary course, a debtor is made bankrupt for a period of one year, and upon the anniversary of the bankruptcy order they are automatically discharged. While a bankrupt is undischarged, they are subject to various restrictions e.g. they are unable to act as company director or be involved in the management, promotion or formation of a business. Once discharged, the debtor can (in theory) start to rebuild their life afresh while their pre-bankruptcy assets remain in the hands of their trustee in bankruptcy (the Trustee).

The Dutch Minister of Justice has recently proposed a legislative bill that drastically reduces court fees in WHOA proceedings.

Background

On April 23, 2024, the American Bankruptcy Institute’s Subchapter V Task Force issued its Final Report.

This article is the second in a series summarizing and condensing the Task Force’s Final Report into “a nutshell.” The subject of this article is:

• whether future rents should be included in the debt cap calculation for Subchapter V eligibility.[Fn. 1]

Recommendation

The Bombay High Court recently quashed a provision of a central government office memorandum that enabled public sector banks to request issuance of look out circulars (LoCs) against wilful defaulters. In Viraj Chetan Shah v Union of India, the court held that this provision violated the fundamental right to life (Article 21) as well as the fundamental right to equality (Article 14). The government is reportedly contemplating a statutory basis for PSBs to initiate LoCs.

The United Arab Emirates enacted Federal Decree Law No. 51 of 2023 on Financial Restructuring and Bankruptcy (the “New Bankruptcy Law”).

It is worth noting that the New Bankruptcy Law established special courts to adjudicate on bankruptcy applications, and will be referred to as the bankruptcy courts (“Bankruptcy Courts”)

The New Bankruptcy Law addresses many important issues which a debtor might encounter if it is to initiate bankruptcy proceedings or if bankruptcy proceedings have been initiated against it. One of such important issues is the lease.  

The High court has recently considered whether permission should be given retrospectively to lift an administration moratorium to allow a counterclaim to proceed.

Background

The counterclaim had been brought by WWTAI against CargoLogicAir Ltd (in administration) (CLA) without the consent of the administrators or the Court. CLA contended that the counterclaim was issued in breach of the statutory administration moratorium and should be struck out.

Solely to set off

Third Circuit Finds Future Royalty Obligations From Sale Transaction Dischargeable in Bankruptcy

The Third Circuit ruled that the obligations are prepetition "contingent and unliquidated" claims that can be discharged in a bankruptcy.

前言

2024年4月8日，世茂集团控股有限公司（股份代号00813.HK，“世茂集团”）在港交所披露，中国建设银行（亚洲）股份有限公司于2024年4月5日向香港特别行政区高等法院（“香港高等法院”）提出对世茂集团的清盘呈请，涉及金额15.795亿港元。世茂集团极力反对该呈请，提出将继续推进境外债务重组，并于4月10日发布有关清盘呈请的进一步公告称，高等法院已将该呈请的首次聆讯日定为2024年6月26日，呈请人提交清盘呈请并不代表能成功进行清盘。

而在2024年1月29日，香港高等法院对中国恒大集团（股份代号03333.HK，“中国恒大”）正式作出公司清盘令并委任共同及各别清盘人。2024年3月22日，中国恒大发布自愿性公告，称其已撤回向美国法院提出的境外债务重组协议安排申请。

继中国恒大陷入严重债务危机并被香港高等法院颁布清盘令后，世茂集团近期被债权人提出清盘呈请的事件再度引发内地债权人关注。对于内地债权人而言，香港清盘程序究竟会对其产生何种影响？

关于香港清盘程序以及清盘令的内容，以及香港清盘程序与内地破产程序的对比，详见我们在香港公司清盘程序对内地债权人的影响（一）一文中的分析。

Although there are occasions when formal insolvency proceedings are unavoidable, there are many cases where a consensual, out-of-court approach is more appropriate and desirable.

We are often engaged to assist creditors, directors and other stakeholders with negotiating standstill agreements or restructuring support agreements to give breathing space to put new terms in place and allow the relevant corporate entity (or group) to continue as a going concern.

As part of the continuous efforts of the Federal Tax Authority (FTA) to assist corporate taxpayers to understand and manoeuvre through the complexities of the corporate tax regime of UAE, FTA has released the latest Business Restructuring Relief Guide for Corporate Tax Purposes (Guide). However please be mindful that, unlike Tax laws, FTA Guidelines are not legally binding.