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    Supreme Court Confirms Existence and Content of "Creditor Duty"
    2022-10-07

    On 4 and 5 May 2021, the Supreme Court heard an appeal in BTI 2104 LLC v Sequana SA and others [2022] UKSC 25 and this week it gave its judgment. The length of the time taken to issue the judgment reflects both the complexity of the issues involved and the importance of the questions raised for company law in the UK.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Morton Fraser MacRoberts, Insolvency, UK Supreme Court
    Authors:
    Richard McMeeken
    Location:
    United Kingdom
    Firm:
    Morton Fraser MacRoberts
    A Comparison of an Ad Hoc Committee and an Official Committee Under Insolvency and Other Laws in England and the United States
    2022-10-07

    Kate Colman, Sarah Levin and Ryan Al-Hakim, Milbank LLP

    This is an extract from the third edition of GRR's The Art of the Ad Hoc. The whole publication is available here.

    Introduction

    Filed under:
    United Kingdom, USA, Insolvency & Restructuring, Litigation, Global Restructuring Review, Insolvency, US Department of Justice, Bank of England
    Location:
    United Kingdom, USA
    Firm:
    Global Restructuring Review
    NCLAT: Claims arising from the grant of an exclusive right and license to use intellectual property rights constitute an ‘operational debt’ under the IBC
    2022-10-07

    In the recent decision of Somesh Choudhary v. Knight Riders Sports Private Limited & Ors., the National Company Law Appellate Tribunal (“NCLAT”), New Delhi has held that claims arising from the grant of an exclusive right and license to use intellectual property rights falls within the definition of “operational debt” under Section 5(21) of Insolvency and Bankruptcy Code, 2016 (“IBC”).

    Background Facts

    Filed under:
    India, Company & Commercial, Insolvency & Restructuring, Litigation, JSA, Insolvency, Insolvency and Bankruptcy Code (India), National Company Law Tribunal
    Authors:
    Dheeraj Nair , Vishrutyi Sahni
    Location:
    India
    Firm:
    JSA
    Directors' duties prior to insolvency
    2022-10-07

    The Supreme Court has handed down its long-awaited judgment in BTI 2014 LLC v Sequana SA [2022] UKSC 25.

    Basic facts

    Filed under:
    European Union, United Kingdom, Company & Commercial, Insolvency & Restructuring, Litigation, Stephenson Harwood LLP, Insolvency, UK Supreme Court
    Authors:
    Nick Axup , Ian Benjamin , Julian Cahn , Tim Crocker , Tal Goldsmith
    Location:
    European Union, United Kingdom
    Firm:
    Stephenson Harwood LLP
    Bombay High Court: Under SARFAESI and RDDB Act, claims of secured creditors would take priority over the dues of taxing/revenue authorities during the enforcement of security interest.
    2022-10-07

    In a recent decision, a 3 (three) judge bench of the High Court of Bombay (“Bombay High Court”) in the case of Jalgaon Janta Sahakari Bank Ltd. & Anr. v. Joint Commissioner of Sales & Anr, has held that the dues of secured creditors would rank superior to dues of state government upon sale of a secured asset under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”) and Recovery of Debts and Bankruptcy Act, 1993 (“RDDB Act”).

    Filed under:
    India, Insolvency & Restructuring, Litigation, JSA, Liquidation, Recovery of Debts and Bankruptcy Act 1993 (India), Bombay High Court, Supreme Court of India
    Authors:
    Dheeraj Nair , Vishrutyi Sahni , Ridhima Sharma
    Location:
    India
    Firm:
    JSA
    The Loan Market Association Transparency Guidelines
    2022-10-07

    Ross Miller, Simmons & Simmons LLP

    This is an extract from the third edition of GRR's The Art of the Ad Hoc. The whole publication is available here.

    Introduction

    Filed under:
    United Kingdom, Banking, Insolvency & Restructuring, Global Restructuring Review, Due diligence, Financial Conduct Authority (UK), Market Abuse Regulation (MAR) (2014/596/EU)
    Location:
    United Kingdom
    Firm:
    Global Restructuring Review
    The Role and Purpose of an Ad Hoc Committee from the Debtor’s Perspective
    2022-10-07

    Kon Asimacopoulos and Gabe Harley, Kirkland & Ellis International LLP

    This is an extract from the third edition of GRR's The Art of the Ad Hoc. The whole publication is available here.

    Introduction

    Filed under:
    European Union, Banking, Insolvency & Restructuring, Global Restructuring Review, Private equity, Supply chain
    Location:
    European Union
    Firm:
    Global Restructuring Review
    The US Perspective
    2022-10-07

    Darren Azman and Natalie Rowles, McDermott Will & Emery

    This is an extract from the third edition of GRR's The Art of the Ad Hoc. The whole publication is available here.

    Introduction

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Global Restructuring Review, Corporate governance, Bankruptcy, US Department of Justice
    Location:
    USA
    Firm:
    Global Restructuring Review
    Inquiry into corporate insolvency in Australia announced
    2022-10-06

    Overview of corporate insolvency in Australia

    On 28 September 2022, the Federal Government, through the Parliamentary Joint Committee on Corporations and Financial Services (the Committee) commenced an inquiry into the effectiveness of Australia’s corporate insolvency laws in protecting and maximising value for the benefit of all interested parties and the economy.

    Filed under:
    Australia, Insolvency & Restructuring, Gilbert + Tobin, Coronavirus, Australian Securities and Investments Commission
    Location:
    Australia
    Firm:
    Gilbert + Tobin
    UK Restructuring Plans: Relief for Landlords and a Word of Warning for Guarantors
    2022-10-06

    The UK High Court has ruled that the obligations of third-party guarantors are not affected by a part 26A restructuring plan being sanctioned in respect of the underlying obligations. This approach mirrors the way guarantees are dealt with in a part 26 scheme of arrangement.

    The case of Oceanfill Ltd. v Nuffield Health Wellbeing Ltd & Cannons Group Limited examined whether a restructuring plan under part 26A of the Companies Act 2006 (the “Act”) had the effect of releasing liability arising under a third-party guarantee.

    Filed under:
    United Kingdom, Company & Commercial, Insolvency & Restructuring, Litigation, Squire Patton Boggs
    Authors:
    Helena Clarke
    Location:
    United Kingdom
    Firm:
    Squire Patton Boggs

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