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    Third Circuit Updates Its Standard for Granting Comity to Foreign Bankruptcy Proceedings
    2024-05-30

    "Comity" is a principle of jurisprudence whereby, under appropriate circumstances, one country recognizes within its borders the legislative, executive, or judicial acts of another nation. Many recent court rulings have examined the indispensable role of comity in the context of foreign bankruptcy or insolvency proceedings that have been "recognized" by U.S. courts during the two decades since the enactment of chapter 15 of the Bankruptcy Code. However, U.S.

    Filed under:
    Global, USA, Insolvency & Restructuring, Litigation, Jones Day, Barclays, Silicon Valley Bank, Third Circuit
    Authors:
    Dan T. Moss , David S. Torborg , Vinay Kurien
    Location:
    Global, USA
    Firm:
    Jones Day
    Supreme Court: The classification of “financial debt” and “operational debt” under IBC can only be determined upon ascertaining the real nature of the transaction.
    2024-05-30

    The Hon’ble Supreme Court of India (“Supreme Court”) in Global Credit Capital Limited & Anr Vs SACH Marketing Pvt. Ltd & Anr, has established the following principles on classification of a debt under the Insolvency and Bankruptcy Code, 2016 (“Code”):

    Filed under:
    India, Insolvency & Restructuring, Litigation, JSA, Insolvency, Insolvency and Bankruptcy Code (India), Supreme Court of India, National Company Law Tribunal
    Authors:
    Dheeraj Nair , Vinod Kumar , Vishrutyi Sahni , Saibarath Seshadhri
    Location:
    India
    Firm:
    JSA
    Companies Act 2014: Changes to Test for Reckless Trading
    2024-05-30

    The Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024 (the Act) was signed into law on 9 May 2024 but has not yet been commenced.

    Filed under:
    Ireland, Company & Commercial, Insolvency & Restructuring, Litigation, Arthur Cox LLP
    Authors:
    Aisling Carey , Suzanne Kearney , Daibhi-OLeary
    Location:
    Ireland
    Firm:
    Arthur Cox LLP
    Fifth Circuit: Recent U.S. Supreme Court Ruling Did Not Alter Mootness Requirements for Unstayed Bankruptcy Sale Orders
    2024-05-30

    Section 363(m) of the Bankruptcy Code offers powerful protection for good-faith purchasers in bankruptcy sales because it limits appellate review of an approved sale, irrespective of the legal merits of the appeal. Specifically, it provides that the reversal or modification of an order approving the sale of assets in bankruptcy does not affect the validity of the sale to a good-faith purchaser unless the party challenging the sale obtains a stay pending its appeal of the order. That is, section 363(m) renders an appeal "statutorily moot" absent a stay of the sale order.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Jones Day, Bankruptcy, Supreme Court of the United States, Fifth Circuit
    Authors:
    T. Daniel Reynolds (Dan)
    Location:
    USA
    Firm:
    Jones Day
    DOL’s Abandoned Plan Program Extended to Bankruptcy Trustees
    2024-05-29

    On May 16th, the DOL released interim final rules (the “Final Rules”) and an amendment to Prohibited Transaction Exemption 2006-06 (the “Amendment to PTE”), effective July 16, 2024, amending the DOL’s Abandoned Plan Program (the “APP”) to allow Chapter 7 bankruptcy trustees to use the APP to terminate, wind up, and distribute assets from a bankrupt company’s retirement plan.

    Filed under:
    USA, Insolvency & Restructuring, Haynes and Boone LLP
    Location:
    USA
    Firm:
    Haynes and Boone LLP
    Fiduciary Duties Post Liquidation
    2024-05-29

    In the recent case of Mitchell v Al Jaber [2024] EWCA Civ 423, the Court of Appeal confirmed that a shareholder and director may still be subject to a fiduciary duty when purporting to transfer company property, even after the company enters liquidation. The decision was made in relation to British Virgin Island (BVI) law, but on the basis of English case authorities.

    Background

    Filed under:
    United Kingdom, Company & Commercial, Insolvency & Restructuring, Litigation, Reynolds Porter Chamberlain, Liquidation, Initial public offerings
    Authors:
    Hattie Hill
    Location:
    United Kingdom
    Firm:
    Reynolds Porter Chamberlain
    Step-by-Step of Voluntary Liquidation in Israel
    2024-05-29

    Liquidation is a legal process that ultimately dissolves the existence of a selected legal entity. During liquidation, the company empties itself of all its economic content, followed by the dissolution of its legal entity. The primary purpose is to sever the connection between the company and its shareholders once the company ceases to operate and exist.

    The Israeli Companies Law outlines various paths for the liquidation of Israeli companies and also determines the process and schedule for each option.

    Filed under:
    Israel, Insolvency & Restructuring, Barnea Jaffa Lande, Liquidation
    Authors:
    Uri Hillel
    Location:
    Israel
    Firm:
    Barnea Jaffa Lande
    Der Insolvenzverwalter in der steuerrechtlichen Verantwortung
    2024-05-29

    Der Insolvenzverwalter ist vielen steuerrechtlichen Verpflichtungen ausgesetzt, deren Vernachlässigung erhebliche Sanktionen auslösen können.

    Filed under:
    Germany, Banking, Insolvency & Restructuring, Litigation, Tax, CMS Germany
    Authors:
    Dr. Annett Kenk , Georg Faude , Björn Frische , Steffen Preis
    Location:
    Germany
    Firm:
    CMS Germany
    The UAE New Bankruptcy Law Resolves Debtors’ Financial Distresses
    2024-05-28

    United Arab Emirates enacted Federal Decree Law No. 51 of 2023 on Financial Restructuring and Bankruptcy (the “New Bankruptcy Law”). The New Bankruptcy Law replaced Federal Decree Law No. 9 of 2016 on Bankruptcy and has come into force from May 1, 2024.

    The New Bankruptcy Law aims at preserving the stability of the national economy, protect rights of creditors and helping debtors to maintain their business to the extent possible, while improving the restructuring and bankruptcy proceedings in the UAE.

    Filed under:
    United Arab Emirates, Insolvency & Restructuring, Galadari Advocates & Legal Consultants, Due diligence
    Authors:
    Charbel Fadel
    Location:
    United Arab Emirates
    Firm:
    Galadari Advocates & Legal Consultants
    Utilisation du recours pour abus dans le cadre des opérations de gestion du passif
    2024-05-28

    Les opérations de gestion du passif gagnent en popularité dans le monde du financement par emprunt. Lorsque les emprunteurs et les émetteurs de titres de créance éprouvent des difficultés à honorer les obligations liées à leurs facilités de crédit, à leurs obligations d’épargne ou à d’autres titres de créance, ils ont recours à des opérations de gestion du passif pour restructurer leurs engagements afin d’obtenir des liquidités supplémentaires sans avoir à obtenir le consentement unanime de leurs créanciers actuels.

    Filed under:
    Canada, Company & Commercial, Insolvency & Restructuring, McCarthy Tétrault LLP
    Authors:
    D.J. Lynde , Geoff R. Hall , William Lee , Jennifer Y. Sun , François Gilbert , Ariane C. Monjauze
    Location:
    Canada
    Firm:
    McCarthy Tétrault LLP

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