In In re Schubert, the Sixth Circuit affirmed the bankruptcy court’s dismissal of an adversary proceeding because the appellants had failed the “person-aggrieved” test for bankruptcy appellate standing. Had they challenged this standard’s existence, two of the three judges likely would have “abrogate[d]” it; the third would have salvaged it. This decision’s dicta represents perhaps the first outright rejection of bankruptcy’s appellate standing touchstone based on the Supreme Court’s analysis in Lexmark International Inc. v. Static Control Components, Inc., 572 U.S.

Navigating cross-border bankruptcy: Gilbert + Tobin has assisted in the recognition of foreign bankruptcy proceedings in Australia, acting for the trustees in bankruptcy in a successful application to recognise Singaporean bankruptcy proceedings.

Background

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.

OLG Schleswig, Beschluss v. 21.02.2023 – 2 Wx 50/22

Bei Eintragung einer neu gegründeten GmbH wird insbesondere auf die Einhaltung gläubigerschützender Vorschriften geachtet. So auch bei der Offenlegung des Gründungsaufwands, der Gesamtbetrag sowie die einzelnen Posten sind in der Satzung anzugeben.

Sachverhalt

The German Federal Court (BGH) has confirmed that section 166 of the German Insolvency Code (InsO) does not provide the administrator with a right to use or realise secured assets for the benefit of the insolvency estate other than movable assets or claims assigned by way of security.

Background

Under section 166 InsO an insolvency administrator may realise a movable asset in which a right to separate satisfaction exists if it is in the administrator's possession. The same applies to claims assigned by way of security.

The European Union (Preventative Restructuring) Regulations 2022 (the “Restructuring Regulations”) were introduced on 27 July 2022 with immediate effect.

You can read our overview of the regulations, specifically the changes they impose on the examinership process and a short overview of the changes imposed on the Companies Act 2014, here.

Just hours after the United States Bankruptcy Court for the District of New Jersey entered an order dismissing the Chapter 11 Case of Johnson & Johnson subsidiary, LTL Management, as a bad faith filing, LTL filed for Chapter 11 protection again in the same Bankruptcy Court.