Debtors in possession or other estate representatives are required to pay U.S. Trustee fees during the pendency of the case. It is often assumed that other entities to whom estate property is transferred must also pay such fees until the case is closed. But as a couple of recent cases illustrate, it may be possible with careful drafting to curtail the reporting and payment of such fees once assets are transferred to a liquidating trust.
A company voluntary arrangement (CVA) is a tool which has been widely utilised by companies seeking to restructure and compromise liabilities.
In recent years CVAs have been in the limelight because of attacks by landlords who feel that they have been unfairly prejudiced by the CVA terms. Largely, challenges such as those to the Regis and New Look CVAs have been unsuccessful, but arguments about unfair prejudice based on “vote swamping” were left open for future debate.
For at least the past decade, federal bankruptcy courts have routinely prohibited cannabis businesses from seeking protection under federal bankruptcy law, regardless of whether a cannabis business is legally operating under state law.
Presently, there is a lot of talk about insolvency and the legal test for corporate insolvency. In simple terms, insolvency or bankruptcy means a company or an individual cannot pay its debts when they are due. In Australia, bankruptcy refers to individuals, and insolvency refers to a company.
In this article, we will focus on corporate insolvency. What is the legal test for solvency? When are you insolvent vs having a short-term liquidity problem? What is the presumption of insolvency, and how can you rebut the presumption and prove solvency?
Luc Defferrard and Tervel Stoyanov, Walder Wyss Ltd
This is an extract from the 2023 edition of GRR's Europe, Middle East and Africa Restructuring Review. The whole publication is available here.
Alexandros Kontogeorgiou and Georgia Papathanasiou, Kontogeorgiou Bakopanou & Associates Law Firm
This is an extract from the 2023 edition of GRR's Europe, Middle East and Africa Restructuring Review. The whole publication is available here.
Matthew Czyzyk, Natalie Blanc, Natalie Raine and Emily Ma, Ropes & Gray
This is an extract from the 2023 edition of GRR's Europe, Middle East and Africa Restructuring Review. The whole publication is available here.
Céline Domenget Morin and Loris Julia, Goodwin Procter LLP
This is an extract from the 2023 edition of GRR's Europe, Middle East and Africa Restructuring Review. The whole publication is available here.
“Creative destruction” occurs when something new kills off whatever existed before it.
IPhone Example
Just think, for example, of all the creative destruction that the iPhone has wrought! It has destroyed businesses that provided telephones and phone books, cameras and film, audio recordings and players, newspapers and newsstands, and related services.
Following a number of recent high-profile collapses of banks in Europe and the United States (notably, Credit Suisse, Silicon Valley Bank, Silvergate Bank and Signature Bank), not only their investors but also their clients may be considering their position under financing arrangements and applicable insolvency law.
Here are five steps that corporate borrowers can take to protect themselves against the fall-out of their financing banks’ insolvency: