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    Silicon Valley Bank: what happens now
    2023-03-15

    Silicon Valley Bank (SVB) was closed by its California state regulators on Friday, March 10, 2023, and the Federal Deposit Insurance Corporation (FDIC) was appointed as receiver. As the market absorbed these developments, customers of SVB and other regional banks rushed to protect their deposits over the weekend, resulting in the closure of Signature Bank in New York, and the announcement on Sunday that all deposits at SVB and SB were moved to newly formed bridge banks.

    What you need to know:

    Filed under:
    Canada, Banking, Insolvency & Restructuring, Torys LLP, Federal Deposit Insurance Corporation (USA), Silicon Valley Bank
    Authors:
    Darien G. Leung
    Location:
    Canada
    Firm:
    Torys LLP
    Bundesgesetz über die Bekämpfung des missbräuchlichen Konkurses
    2023-03-14

    Das Bundesgesetz über die Bekämpfung des missbräuchlichen Konkurses bringt neben Anpassungen im Schuldbetreibungs- und Konkursgesetz (SchKG) sowie dem Strafgesetzbuch (StGB) auch wichtige Änderungen im Obligationenrecht (OR) und in der Handelsregisterverordnung (HRegV). Dadurch sollen die Hürden für die Befreiung von Schulden zum Nachteil der Gläubiger künftig erhöht werden. Die Gesetzes- und Verordnungsänderungen werden voraussichtlich im Januar 2024 in Kraft treten.

    Ausgangslage

    Filed under:
    Switzerland, Insolvency & Restructuring, Lenz & Staehelin
    Authors:
    Tanja Luginbühl , Roman Graf
    Location:
    Switzerland
    Firm:
    Lenz & Staehelin
    Loi fédérale sur la lutte contre l'usage abusif de la faillite
    2023-03-14

    À côté des adaptations à la Loi fédérale sur la poursuite pour dettes et faillite (LP) et au Code pénal (CP), la Loi fédérale sur la lutte contre l'usage abusif de la faillite entraîne d'importantes modifications du Code des obligations (CO) et de l'Ordonnance sur le registre du commerce (ORC). Elle vise ainsi à augmenter les obstacles à la libération des dettes au préjudice des créanciers. Les modifications de la loi et des ordonnances devraient entrer en vigueur en janvier 2024.

    Situation actuelle

    Filed under:
    Switzerland, Insolvency & Restructuring, Lenz & Staehelin
    Authors:
    Tanja Luginbühl , Roman Graf
    Location:
    Switzerland
    Firm:
    Lenz & Staehelin
    Silicon Valley Bank - what happens now?
    2023-03-14

    This article provides information regarding what will now happen to the operations and business of the UK arm of Silicon Valley Bank (SVB UK) after the sale (the Sale) of SVB UK to HSBC’s ring-fenced UK subsidiary, HSBC UK Bank plc (HSBC).

    Filed under:
    United Kingdom, Banking, Insolvency & Restructuring, Macfarlanes LLP, Financial Conduct Authority (UK), Federal Deposit Insurance Corporation (USA), HM Treasury (UK), HSBC, Bank of England, Prudential Regulation Authority (UK), Silicon Valley Bank, Banking Act 2009 (UK)
    Authors:
    Paul Keddie , Jatinder Bains , Richard Fletcher
    Location:
    United Kingdom
    Firm:
    Macfarlanes LLP
    Share Charge Enforcement Strategies for Private Credit Lenders
    2023-03-14

    WE CONSIDER BELOW THE SHARE CHARGE ENFORCEMENT OPTIONS FOR PRIVATE CREDIT LENDERS, WHO MAY NOW COME TO PREFER 'APPROPRIATION' AS THE LESS FORMAL, MORE IMMEDIATE 'LOAN-TO-OWN' TOOL TO SOLVE FOR BORROWER JV DISPUTES, BREAK SHAREHOLDER DEADLOCKS, AND AS A PROACTIVE MEANS TO PRESERVE VALUE IN A CREDIT.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Addleshaw Goddard LLP, Liquidation
    Authors:
    Seán McGuinness , Karl Clowry
    Location:
    United Kingdom
    Firm:
    Addleshaw Goddard LLP
    What Do Businesses Need to Know About Recent Bank Failures?
    2023-03-14

    The recent failures of Silicon Valley Bank (“SVB”) and Signature Bank have dominated news headlines for the last several days. The seemingly abrupt failure of two large financial institutions and the subsequent revelations that some businesses could lose a substantial amount of deposits have a lot of business owners concerned about the security of their funds. However, recent actions by the Federal Reserve Board (“FRB”) and United States Treasury Department have substantially reduced the risk that depositors will lose deposits.

    Filed under:
    USA, Banking, Construction, Insolvency & Restructuring, Dickinson Bradshaw Fowler & Hagen P.C., Federal Deposit Insurance Corporation (USA), US Department of the Treasury
    Authors:
    John E. Lande
    Location:
    USA
    Firm:
    Dickinson Bradshaw Fowler & Hagen P.C.
    Debt recovery and navigating insolvency: what are the options for commercial UK landlords?
    2023-03-15

    There are many practical steps, pitfalls and strategies available for recovering commercial rent arrears, both before and after tenant insolvency

    Filed under:
    United Kingdom, Insolvency & Restructuring, Real Estate, Osborne Clarke, Corporate Insolvency and Governance Act 2020
    Authors:
    Colette Brimble , Claire Bundy , Alexandra Foxon
    Location:
    United Kingdom
    Firm:
    Osborne Clarke
    The Vidarbha Aftermath
    2023-03-15

    On July 12, 2022, the Supreme Court of India (“Supreme Court”) passed a judgment in Vidarbha Industries Power Limited v. Axis Bank Limited[1] (“Vidarbha”), which considered the question whether Section 7(5)(a) of the Insolvency and Bankruptcy Code, 2016 (“Code”), is mandatory or discretionary in nature.

    Filed under:
    India, Arbitration & ADR, Insolvency & Restructuring, Litigation, Cyril Amarchand Mangaldas, Mediation, Companies Act 2013 (India), Insolvency and Bankruptcy Code (India), Supreme Court of India, National Company Law Tribunal
    Authors:
    Sharan Kukreja , Abhijna Somashekara , Mukesh Seju
    Location:
    India
    Firm:
    Cyril Amarchand Mangaldas
    Unfair preferences: no set-off against liquidator’s recovery claim
    2023-03-14

    The High Court of Australia has recently upheld a decision of the Full Federal Court in Metal Manufacturers Pty Limited and Gavin Morton as liquidator of MJ Woodman Electrical Contractors Pty Ltd (in liquidation) & Anor[1], which confirmed that statutory set-off is not available to be offset against a liquidator’s claim for the recovery of an unfair preference.

    Filed under:
    Australia, Banking, Insolvency & Restructuring, Litigation, Hall & Wilcox, Corporations Act 2001 (Australia)
    Authors:
    Mark Petrucco
    Location:
    Australia
    Firm:
    Hall & Wilcox
    SVB and Distressed Banks: Lessons Learned from a Wild Weekend
    2023-03-14

    US governmental authorities, including the US Department of the Treasury, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation, took actions to provide both insured and uninsured depositors of Silicon Valley Bank (SVB) (as well as Signature Bank) access to their deposits beginning Monday, March 13. However, despite these actions, many customers are still dealing with the aftermath of an uncertain weekend, and practical questions remain to be answered.

    Filed under:
    USA, Banking, Insolvency & Restructuring, IT & Data Protection, Morgan, Lewis & Bockius LLP, Private equity, Federal Deposit Insurance Corporation (USA), US Department of the Treasury, HSBC, Bank of England, Silicon Valley Bank
    Authors:
    Edwin E. Smith , Christopher M. Paridon , Erin E. Martin , Richard Hanson , Ian A. Wright
    Location:
    USA
    Firm:
    Morgan, Lewis & Bockius LLP

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