Bank Asset Auction: Bids for Silicon Valley Bridge Bank, N.A. (“SVB”) and its subsidiary Silicon Valley Private Bank, together or separately, in whole or in part, are due by Wednesday, March 22, 2023 at 8 p.m. and Friday, March 24, 2023 at 8 p.m. We’ve previously reported that SVB is open for operations for a minimum of ninety days until it is sold or liquidated.

There has always been a matter of contention for a Committee of Creditors, Resolution Professionals, legal fraternity during Corporate Resolution Insolvency Process (CIRP), whether the dues of the Government like Income-Tax, Sales Tax, Value Added Tax etc. are secured debt and whether the Government is a secured creditor.

The National Company Law Appellate Tribunal has answered this question in affirmative in its recent𝗷𝘂𝗱𝗴𝗲𝗺𝗲𝗻𝘁 𝗱𝗮𝘁𝗲𝗱 𝟳𝘁𝗵 𝗙𝗲𝗯., 𝟮𝟬𝟮𝟯 𝗶𝗻 𝗖𝗼𝗺𝗽𝗮𝗻𝘆 𝗔𝗽𝗽𝗲𝗮𝗹 (𝗔𝗧) (𝗜𝗻𝘀𝗼𝗹𝘃𝗲𝗻𝗰𝘆) 𝗡𝗼. 𝟮𝟰𝟮 𝗼𝗳 𝟮𝟬𝟮𝟮 (𝗣𝗿𝗶𝗻𝗰𝗶𝗽𝗮𝗹 𝗖𝗼𝗺𝗺𝗶𝘀𝘀𝗶𝗼𝗻𝗲𝗿 𝗼𝗳 𝗜𝗻𝗰𝗼𝗺𝗲 𝗧𝗮𝘅 & 𝗔𝗻𝗿. 𝘃𝘀. 𝗔𝘀𝘀𝗮𝗺 𝗖𝗼𝗺𝗽𝗮𝗻𝘆 𝗜𝗻𝗱𝗶𝗮 𝗟𝘁𝗱).

The recent decision from the Court of King’s Bench of Alberta (the “Court”) in Qualex-Landmark Towers Inc v 12-1- Capital Corp, 2023 ABKB 109 (“Qualex”) greatly extended the protective umbrella for costs associated with environmental reclamation obligations.

Corrupt managerial behavior has been a driver in the collapse of the cryptocurrency market. Enforcing and defending claims against directors and officers, where the directors and officers are not living in the United States and may not be U.S. citizens, is a current judicial focus in the U.S. litigation system. In the Three Arrows Capital (“Three Arrows”) chapter 15 case, the U.S. Bankruptcy Court for the Southern District of New York (the “U.S.

In spite of its cross-border dimension, the subject matter and result of the hearing giving rise to the judgment in Re Khadzhi-Murat Derev (in Bankruptcy); Allen v Derev & Anor [2023] EWHC 387 (Ch) are conventional.

Introduction:

A labour and material surety bond (“L&M Bond”) is a type of surety bond that guarantees that the bonded contractor will pay all claimants for goods or services supplied for the bonded project. Claimants under L&M Bonds are typically suppliers or sub-contractors that contract with the bonded contractor (the Principal) to supply goods or provide services for the bonded job. However, under some L&M Bonds, “lower tier” suppliers or sub-sub-contractors are not protected.

Executive Summary:

The High Court has approved the sale of a portfolio of securities owned by Sova Capital Limited (Sova) to an unsecured creditor in consideration of the release of that creditor’s claim. The court’s approval of the transaction in this case marks the first reported decision on an unsecured credit bid for the assets of a company in administration (Re Sova Capital Limited (in special administration) [2023] EWHC 452 (Ch)).

Facts

This week’s TGIF concerns Kennedy Civil Contracting Pty Ltd (Admins Appt) v Richard Crookes Construction Pty Ltd [2023] NSWSC 99, in which the New South Wales Supreme Court determined that an insolvent company’s creditors could properly make a DOCA to maintain the right under security of payment legislation to recover amounts that would have been lost on entry into liquidation.

Key takeaways

What You Need to Know

• Silicon Valley Bank’s 48-hour collapse sent several Big Law firms into action late last week.

• Morgan Lewis, Wilmer, Wilson Sonsini and Ballard Spahr are among the laws firms that launched task forces and webinars over the weekend.

• Despite some reassurance from the FDIC on Sunday, there are lingering issues that are expected to continue to prevent firms’ clients from conducting business in the normal course.