This is the third article in our series about sponsor licences. This article focuses on the effect of insolvency on a sponsor licence.

Businesses are facing challenging times in the current economic downturn and insolvency is a real possibility for many, with 5,595 company insolvencies in the third quarter of 2022[1] alone.

If a business is on the brink of insolvency this will potentially have an impact on any sponsorship licences held within the company group. But what are the implications of this and what does it mean for sponsored employees?

近年来，越来越多的企业面临债务困境，由于该等企业较多成立时间久、体量巨大，且存在经营多元化、债权债务形式多样化的情形，企业资金链的断裂易引发债务风险，实践中迫切需要进行债务重组，使债权人得到受偿，让企业重获新生。从目前情况来看，信托工具越来越多地被应用于债务重组中，包括在破产重整前的债务重组阶段，也包括在破产重整阶段。根据中国信托业协会于2022年12月12日发布的《2022年3季度中国信托业发展评析》，截至2022年3季度末，我国信托资产规模余额约为21.07万亿元。另根据建信信托有限责任公司（“建信信托”）发布的《建信信托2021年年度报告》，截至2021年12月31日，建信信托破产重整服务信托规模超2,300亿元[1]；根据中信信托有限责任公司（“中信信托”）发布的《中信信托二〇二一年年度报告》，截至2021年12月31日，中信信托特殊资产服务信托业务受托规模近160亿元[2]。

In 2022, there were several high-profile crypto bankruptcy filings. A big question in these cases is whether there will be any money to satisfy unsecured creditor claims. If there are funds to distribute, then the creditors’ claims will become more valuable, and the cases will become even more interesting.

In brief

The New Criminal Code became the first piece of legislation passed into Law in 2023 and was promulgated on 2 January as Law No. 1 of 2023.

Ignorance of the law is no excuse. We all learned that in law school. Still, you don’t know what you don’t know. And when it comes to bankruptcy law, too many of us just don’t know some basics, like how to protect your fee. Non-bankruptcy lawyers routinely represent debtors or their litigation opponents in non-bankruptcy disputes, such as personal injury claims. To comply with your duty to competently represent clients who are in bankruptcy or litigating against a debtor, and to protect your fee, know these fundamentals.

In a decision likely to have significant impact on certain types of bankruptcy filings going forward, this morning, the Third Circuit Court of Appeals ordered the dismissal of the Chapter 11 bankruptcy case filed by Johnson & Johnson affiliate LTL Management LLC.

Introduction The BVI Business Companies Act (as amended) (the Companies Act) provides two ways to dissolve a solvent company incorporated in the BVI (the Company), namely: 1) to complete a voluntary liquidation process, with dissolution occurring immediately thereafter; or 2) to allow the Company to be administratively struck off the Register of Companies (the Register) by the BVI Registrar of Corporate Affairs (the Registrar) and simultaneously dissolved on the date the Registrar publishes a notice of the striking off in the Government of the Virgin Islands Official Gazette (the Gazette).

FTX Trading Ltd. ("FTX") and its affiliates (collectively, "FTX Group"), which operated one of the largest crypto-asset exchanges in the world through the FTX.com platform, filed for Chapter 11 in the United States on November 11 last year.

In recent years, Israel’s real estate and infrastructure market has experienced many cases of the corporate collapse of performance contractors. Just recently, a court ordered a temporary stay of proceedings against the construction company Tal Bar Construction and Supervision. The recent interest rate hike has also made headlines, including that it might hit performance contractors particularly hard. The collapse of a construction company affects not only the company and its creditors but also the project’s developer.