A recent decision of the Court of Justice of the European Union (CJEU) on the transfer of undertakings and the “retention of identity” of part of a business is instructive to practitioners in advising on the transfer (or potential transfer) of employees.

Synopsis:

CMS today publishes a White Paper examining whether there is a case for a special insolvency regime in the oil and gas industry.

According to recent press reports, Dave Forsey, Chief Executive of Sports Direct, is the latest (and most high-profile) executive to be hit by court proceedings concerning alleged failure to comply with redundancy notification procedures - in his case in his former position at fashion retailer, USC. As these and other reports confirm, there is clear evidence that the Insolvency Service is increasingly proactive in pursuing organisations, their senior personnel and insolvency practitioners who fail to file the requisite redundancy notification form (HR1) on time.

The Insolvency (Amendment) Rules 2015 (the “2015 Rules”) came into force on 1 October 2015. They amended the 1986 Insolvency Rules to introduce a new approach to the approval and payment of insolvency office holders (“IOH”s)’ fees and disbursements.

As of 1 October 2015, a number of changes have been introduced to insolvency law in the UK with more to follow on 10 October 2015 and then in April 2016.  The key developments implemented in October 2015 will affect both companies and individuals.

From 1 October 2015

Personal Insolvency

Further to the review of pre-pack administration sales (“pre-packs”) by Teresa Graham CBE last year (the findings of which were published in the “Graham Report” and discussed in one of our earlier blogs,Change in Sight for UK Pre-pack Administration Regulation), the key recommendations have now been implemented in order to improve fairness and transparency especially where a pre-pack sale occurs to a connected party.

‘Visit England’ promotes tourism to England and Wales by reference to the beautiful scenery, world-class museums and abundance of culture on offer. Following the recent judgment of JSC Bank of Moscow v Kekhman & Ors [2015] EWHC 396 (Ch) (Kekhman), it should consider adding an advantageous personal insolvency regime to this list. 

I am sure many of you may be aware already that as of the 1st October 2015 the Bankruptcy Limit has increased to £5,000 whilst a Winding up Order remains the same at £750.00.

The limit debtor's can apply for a Debt Relief Order has also been increased from £15,000 to £20,000.

In John David Hedger (the Liquidator of Pro4Sport Ltd) v David Adams [2015], the Liquidator of Pro4Sport Ltd (Pro4Sport) made an application to the Court under section 212 of the Insolvency Act 1986. The claim arose out of one transaction which took place shortly before the liquidation of Pro4Sport on 20 July 2012. On 25 June 2012 Mr Adams, on behalf of Pro4Sport, transferred all, or practically all, of the assets of Pro4Sport to an associated company, Pro4Sport.co.uk Ltd (Pro4Sport.co.uk) for a deferred consideration of £47,000 plus VAT.

With the first PPF levy invoices based on the new Experian insolvency-risk assessment model starting to land on trustees’ door-mats, many schemes have made the unwelcome discovery that their PPF levy for 2015-16 has suffered a substantial hike. Around 200 schemes are reported to have seen levy rises in excess of £200,000.