In a recent case, the High Court has had one of its first opportunities to consider BTI v Sequana [2022] UKSC 25 (see our previous update here), in which the Supreme Court gave important guidance on the existence and scope of the duty of company directors to have regard to the interests of creditors (the so-called “creditor duty”, which arises in an insolvency scenario).
Dlouho očekávaný zákon o preventivní restrukturalizaci čeká na podpis prezidenta a v následujících dnech nabude účinnosti. Nabídne podnikatelům nové nástroje, jak zavčas řešit své finanční potíže a vyhnout se úpadku.
Dne 23. srpna 2023 schválil Senát návrh zákona o preventivní restrukturalizaci, kterým se značným zpožděním dochází k transpozici směrnice Evropského parlamentu a Rady (EU) 2019/1023 ze dne 20. června 2019 o restrukturalizaci a insolvenci („Zákon“ a „Směrnice“).
Der Bundesgerichtshof (BGH) hat am 29. Juni 2023 entschieden, dass ein Rechtsanwalt wegen Beratungsfehlern zu Zahlungen nach Insolvenzreife gegenüber dem Geschäftsführer haften kann, auch wenn er das Unternehmen und nicht die/den Geschäftsführer persönlich berät (IX ZR 56/22, ZInsO 2023, 1642).
On 31 August 2023, the Romanian government passed emergency Government Ordinance (GEO 2023), which extends by 90 days the validity of the insurance policies issued by Euroins Romania Asigurare-Reasigurare S.A., which is now in bankruptcy. Prior to the issuance of GEO 2023, motor third liability insurance policies (MTPL) issued by Euroins Romania were due to expire on 8 September 2023 while the guarantee policies issued by this insurer were due to expire within 150 days after the opening of its bankruptcy procedure (i.e. 7 November 2023).
The judgement raises important questions for directors faced with substantial liabilities
Three recent Hong Kong first instance court decisions have left undecided the question of whether a winding-up petition will trump an agreement to arbitrate when it comes to a winding-up and particularly in the context of cross-claims. A Court of Final Appeal decision this spring had seemed to provide pointers that the parties' agreement would be upheld but the issue – particularly when it comes to unmeritorious and late arbitration applications – is dividing the courts.
“(b) Duties.—The [Subchapter V] trustee shall— . . . (7)facilitatethe development of a consensual plan of reorganization.”
- From 11 U.S.C § 1183(b)(7)(emphasis added).
Facilitation is, by statute, a duty of every Subchapter V trustee—something a Subchapter V trustee must do. But the nature and boundaries of the facilitation role have always been fuzzy and, therefore, misunderstood.
My purpose in this multi-part series is to provide observations on the facilitation role.
Restructuring plans can provide companies in the early stages of financial difficulty with a flexible alternative to entering a formal insolvency procedure
Under Part 26A of the Companies Act 2006 (CA 2006), companies or groups encountering financial difficulties affecting their ability to carry on business can propose a compromise or arrangement (a restructuring plan) which mitigates or eliminates the effects of those financial difficulties.
A "Liquidation Preference" is a clause in investment and shareholders’ agreements that determines the order in which proceeds from a liquidity event (such as a trade sale or asset sale) are distributed among different shareholders. This clause often pertains primarily to preferred shareholders, such as venture capital investors.