When feeling a little lost, stressed or fearful about life its fairly natural to gravitate towards things that give us a sense of ease (dopamine), control, distraction and worth. I used to find these escapes in in alcohol, and then food, and from time to time I still do in shopping to the detriment of my mental health.

But all things in moderation as they say, and I would argue there is actually meaning in some material things that give us a sense of remembrance or comfort. Hard work should be rewarded and this is often a nice way to do so.

Global political crises, volatile interests, inflation and supply chain issues challenge many companies. In this blog series, VISCHER's restructuring & insolvency team will show how companies can navigate through these challenges. Here you will find answers to the most important questions regarding the duties of a director of a Swiss subsidiary.

1. What is the group dilemma and what interests must a Swiss subsidiary's board safeguard?

In a decision likely to have a knock-on effect for future fraudulent transfer defense and valuation litigation, the Delaware bankruptcy court recently ruled that the price agreed in the sale of an oil and gas company closed by market participants represents the reasonably equivalent value for the assets being sold and is more reliable evidence of value than expert testimony prepared for the purposes of litigation.

Amendments to the Malaysian Insolvency Act 1967 were passed by the Dewan Rakyat on 24 May 2023. 

A few key points arising from the amendments are:

1. Sub-section 33B (2A) was amended to include 2 new categories where bankrupt individuals may be able to qualify for a discharge from bankruptcy and the creditor(s) may not object:

Key Points

A “pre-pack” is a sale of all or part of a distressed company’s business or assets, negotiated before the company enters a formal insolvency process and executed by the appointed insolvency practitioner immediately after the insolvency process begins.

Revival of the Corporate Insolvency Resolution Process (‘CIRP’) proceedings refers to the restoration of the already withdrawn CIRP by a creditor which generally happens upon the breach of the settlement agreement (‘Settlement Agreement’) pursuant to which the application for CIRP also gets withdrawn. In such circumstances, rather than filing for a fresh application for initiation of CIRP, the creditor may seek reviving of the earlier application.

June 2023 – As part of a package of measures in the field of commercial law, the National Council of the Slovak Republic approved today, 28 June 2023, amendment to Act no. 7/2005 Coll. on Bankruptcy and Restructuring and on Amendments to Certain Acts, which confirms the long-standing treatment of the creditor-debtor relationship in Slovakia in cases of the potential relationship between the debtor and the creditor.

It is worthwhile for creditors to take part in litigation even if the outcome could go against them. This way, they can help prevent the court from issuing rulings sought by colluding debtors and their allies.

In the case of Re Guangdong Overseas Construction Corporation [2023] HKCFI 1340, the Honourable Madam Justice Linda Chan recognized and provided assistance to a mainland China appointed administrator over a mainland China company in liquidation despite the administrator's application being outside the scope of the insolvency cooperation mechanism between Hong Kong and mainland China courts. The Hong Kong court affirmed that its jurisdiction to recognize and assist office-holders appointed by a court of another jurisdiction derives from common law.