It is widely anticipated that the next twelve months could be a challenging period for many businesses in the UK and that there could be a significant rise in the number of companies in financial distress.

Where this is the case, the directors of those companies will need to be increasingly mindful of the duties they have to the company's creditors, as well as to its shareholders.

Boy Scouts of American achieved a confirmed plan of reorganization in its bankruptcy.

That confirmation is now affirmed on appeal by the U.S. District Court in Delaware[fn. 1]—and is heading to the Third Circuit Court of Appeals for further review.

The District Court’s affirming opinion is 155 pages long and highly detailed. This article tries to summarizes the opinion’s highlights—attempting to make the complex clear.

100% Payment Plan

The core of the opinion, around which most everything else revolves, is this:

The focus is on the CTA with a double sided trust arrangement, which has become the market standard for insolvency protection of the relevant payment claims of the individual employee by way of a CTA solution at the latest since the judgements of the Federal Labour Court (Bundesarbeitsgericht, BAG) of 18 July 2013 (6 AZR 47/12) and 22 September 2020 (3 AZR 303/18, CTA rulings).

Im Fokus steht dabei das CTA mit einer doppelseitigen Treuhand, das sich spätestens seit den Urteilen des Bundesarbeitsgerichts (BAG) vom 18.07.2013 (6 AZR 47/12) und vom 22.09.2020 (3 AZR 303/18, CTA-Urteile) als Marktstandard zur Insolvenzsicherung der relevanten Zahlungsansprüche des einzelnen Mitarbeiters im Wege einer CTA-Lösung durchgesetzt hat. Das BAG hat in den CTA-Urteilen die Insolvenzfestigkeit des doppelseitigen CTA für die Insolvenzsicherung von Wertguthaben aus Altersteilzeitarbeitsverhältnissen (6 AZR 47/12) sowie von bAV-Zusagen (3 AZR 303/18) erkannt.

Persuading a bankruptcy judge to find “excusable neglect” after missing a filing deadline is usually a tough sell. You’d think it would be particularly hard when the party seeking relief was “belligerent and disrespectful to the Court and opposing counsel.”

The Belgian legislator is preparing a legal framework on insolvency law to expand the restructuring toolbox. On 26 March 2023, a draft bill was published transposing EU Directive 2019/1023 on restructuring and insolvency. The Bill should be voted before the summer holidays. Our Restructuring & Insolvency team has identified five things you need to know about the upcoming changes.

Introductie

In het eerste kwartaal van 2023 zijn op www.rechtspraak.nl verschillende uitspraken gepubliceerd waarin de ingestelde vordering gegrond was op bestuurdersaansprakelijkheid.

In deze Kwartaalupdate Bestuurdersaansprakelijkheid voor Q1 2023 is een selectie gemaakt uit deze uitspraken. De navolgende onderwerpen komen aan bod:

01. Feitelijk bestuurder wanneer is sprake van `terzijde stellen van het bestuur'? (Hoge Raad 24 maart 2023) 2

02. Schending boekhoudplicht, niet slechts bij ontbreken van administratie (Gerechtshof 's-Hertogenbosch 10 januari 2023)5

Although it’s inaccurate to say that the Chinese character for “crisis” combines the characters for danger and opportunity, the thought has resonated since President Kennedy repeatedly used this trope in his presidential campaign speeches.

Sometimes a debtor is liable for fraud that she did not personally commit,” held the U.S. Supreme Court on Feb. 22, 2023, when the debtor’s business partner had deceptively obtained money by fraud, thereby making the innocent partner liable for a nondischargeable debt under Bankruptcy Code (Code) §523(a)(2)(A) (“any debt from money “obtained by … fraud” not dischargeable and survives debtor’s bankruptcy). Bartenwerfer v. Buckley, 2023 WL 2144417 (Feb. 22, 2023).

On 28 September 2022, the Parliamentary Joint Committee on Corporate and Financial Services (“Committee”) began an inquiry into corporate insolvency in Australia, the first of its kind in over 30 years. The Committee invited submissions from interested persons and stakeholders to provide recommendations on how best to improve Australia’s corporate insolvency framework. Submissions have now closed, with contributions from over 50 industry bodies, government bodies and various representative bodies and groups.