How do you improve the image of company voluntary arrangements? Start by reforming the voting rules.
The effect of a liquidation order is to crystallise an insolvent company’s position in time and to ensure that no further transactions can be concluded by that entity. In other words, once a company is in liquidation and the concursus has occurred, no creditor may exercise its rights against that company in a manner prejudicial to other creditors.
This is a well-established principle of South African law, but what does it mean for a security taker wishing to, by agreement with the insolvent company, rectify a written agreement concluded prior to liquidation?
An exclusive jurisdiction clause (EJC) is a clause in a contract limiting the determination of disputes under that contract to one agreed jurisdiction or forum. It has been unclear whether an EJC could be relied upon to dispute a debt in the context of bankruptcy proceedings. It is trite that a bona fide dispute on the debt on substantial grounds is sufficient for a bankruptcy or winding-up petition to fail.
This week’s TGIF examines Sentinel Orange Homemaker Pty Ltd v Davis Investment Group Holdings Pty Ltd (in liquidation) (No 2) [2022] NSWSC 1171 where a court considered an application for non-party costs orders against a litigation funder and the liquidator of an insolvent defendant.
Key takeaways
In significant news for the insolvency industry, the High Court will hear the long-awaited Gunns Group preference claim appeal in Bryant & Ors v Badenoch Integrated Logging (A10/2022) on 18 October 2022.
Johnson Winter & Slattery act for PwC, the appellant liquidators of the Gunns group, in the proceeding.
Briefly stated, the grounds for the appeal are:
Two recent cases examine whether, given the impossibility to liquidate a company due to a corporate deadlock, a court can invalidate certain resolutions at the request of one shareholder.
In brief
This summer Kazakhstan has passed the latest set of amendments1 to certain laws on netting for derivative contracts and other qualified financial contracts ("Netting Amendments"), including the following:
When a borrowing company goes into administration, lenders will want to enforce their security immediately. However, administration risk delays lenders from enforcing their security during the moratorium period without leave from the court or consent from the administrator.
This article provides an insight into administration risk, explains ways to mitigate administration risk and how featherweight securities can be effectively used.
With local and global inflation at their highest in decades, rising interest rates, continuing supply chain woes and the effects of the Russia-Ukraine conflict being felt across Asia, many businesses that are established in the British Virgin Islands (BVI) and the Cayman Islands are scrutinising the available tools to avoid liquidity issues and potential insolvency. The economic fallout from covid-19 and related restrictive measures, along with bond defaults by various PRC property developers, has only exacerbated this crisis.