What needs to be cured on the legal and tax fronts: A proposal for a financial restructuring and NPL reform

1 Available at: https://www.tcmb.gov.tr/wps/wcm/connect/TR/TCMB +TR/Main+Menu/Istatistikler/Odemeler+Dengesi+ve+ Ilgili+Istatistikler/Ozel+Sektorun+Yurtdisindan+Sagla digi+Kredi+Borcu/Veri+%28Tablolar%29/

2 Available at: https://www.bddk.org.tr/ContentBddk/dokuman/duyur u_0730_01.pdf

In a prior blog post, “Making Sense of The Circuit Split on the Enforcement of Make-Whole Provisions in Bankruptcy,” we discussed the circuit split on the enforcement of a make-whole premium triggered by a bankruptcy petition. Shortly after that post was published, the U.S.

Yeni Gelişme  

Türkiye Büyük Millet Meclisi, konkordato sürecinin suiistimal edildiğine ilişkin gelen tepkileri göz önünde bulundurarak, İcra ve İflas Kanunu'ndaki konkordato hükümlerinde değişiklikler öngören kanun teklifini yasalaştırmıştır. Değişiklikler 19 Aralık 2018 tarihinde Resmi Gazete’de yayımlanarak yürürlüğe girmiştir. Ancak görülmekte olan konkordato talepleri hakkında önceki hükümler uygulanmaya devam edecektir.

Kabul Edilen Değişiklikler  

Önemli değişiklikler aşağıda özetlenmiştir.

A preferential transaction occurs where an insolvent person or debtor makes a transfer of property or a payment that has the effect of favouring one creditor over another. Creditors and bankruptcy trustees can use federal or provincial legislation to attack preferential transactions. A recent Ontario Court of Appeal decision, Golden Oaks Enterprises Inc v Scott, 2022 ONCA 509, upheld the finding that certain transactions were an unlawful preference under section 95(1)(b) of the Bankruptcy and Insolvency Act, RSC 1985 c B-3 (“BIA”).

In brief

The Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act ("Act") received royal assent on 15 December 2021.

The Act extends the scope of powers available to the Insolvency Service to address the issue of directors dissolving companies to avoid paying their liabilities.

In brief

On 14 May 2021, the Supreme People’s Court (SPC) and the Hong Kong government agreed a framework (“Framework”) for judicial cooperation in corporate insolvency and debt restructuring. Under the Framework:

In brief

The COVID-19 pandemic has put the rescue of struggling but viable businesses front of the agenda.  The initial response of the Belgian government and legislator was a moratorium on enforcement measures and bankruptcy petitions.  Such moratorium can however not be a structural solution in the long term, and expired on 31 January 2021.

In brief

As of 19 October 2020, the changes to the Bankruptcy Code of Ukraine became effective. 

What’s new

From 17 October 2020, and for the quarantine period, the following changes are introduced in the bankruptcy procedure:

In brief

The following measures introduced as a COVID-19 response are now to be extended:

The Singapore Court of Appeal has clarified the standard of review that applies to winding-up applications where the underlying relationship between the debtor and creditor is subject to an arbitration agreement.

Background

Under Section 254(2)(a) of the Singapore Companies Act, a company can be wound-up by the court upon the application of a creditor who has served a statutory demand on the company for a debt of SGD 10,000 or more and the debt continues to remain unpaid for three weeks thereafter.