Despite calls upon the government to intervene and, later, attempts to sell the business, the South West construction firm Midas has collapsed into administration this week.

The collapse of the business has led to over 300 redundancies, though it is understood that a section of the business (Mi-Space) has been sold, saving over 50 jobs. Concerns have also been raised about the knock-on effort on sub-contractors and connected businesses, many of whom have been left out of pocket through unfulfilled contracts and unpaid invoices.

The BVI Registrar of Corporate Affairs (the Registrar) maintains a Register of Companies (the Register) which records the name of each company incorporated or continued under the BVI Business Companies Act, 2004 (as amended) (the Act).

This guide examines the procedures by which the name of a company may be struck off, or restored to, the Register under the Act.

What is strike off?

The Finance Bill, 2022 introduces amendments to provide clarity and reduce protracted litigation for entities undergoing business succession / reorganisation.

The Government has been making consistent efforts to simplify and rationalise the tax framework in India. Accordingly, the Finance Bill, 2022 (Bill) proposes several amendments to address practical nuances and anomalies arising in business successions/reorganisations.

In the Summer 2021 edition of the Restructuring Report, I wrote about legislative efforts to reform the Bankruptcy Code to place limits on the use of third party releases in bankruptcy plans of reorganization.

In the First, Sixth (in some districts within the circuit), Eighth, Ninth and Tenth Circuits an appeal from a bankruptcy court order may go either to the district court, as elsewhere in the country, or, uniquely to those five circuits, to a Bankruptcy Appellate Panel (BAP). The BAP is a three-judge panel selected from bankruptcy judges in the circuit but not the same district. Under the statute, presumptively the appeal goes to the BAP but the appellant may elect to go to the district court.

For the second time in four weeks, a U.S. district court questioned the authority of bankruptcy courts to issue nonconsensual third-party releases as part of a plan of reorganization.

On February 8, 2021, the Congress of the Republic of Guatemala approved the Insolvencies Law. Such Law will imply material and important changes to the legal framework applicable to insolvency and bankruptcy procedures, which will be oriented to benefit the reorganization and continuation of business for debtors that are facing insolvency, so they may comply with their credit obligations without endangering the creditors’ rights. The next step for the Law on Insolvencies’ entry into force, is to obtain the presidential approval and publication by the Executive Branch of government.

El 8 de febrero de 2021 fue aprobada la Ley de Insolvencias por el Congreso de la República de Guatemala. Dicha ley traerá cambios significativos dentro del marco normativo de los procesos concursales y quiebras, orientados a beneficiar la reorganización patrimonial y continuación del negocio en marcha de aquellos deudores en situación de insolvencia, de manera que puedan hacer pago de sus obligaciones sin poner en riesgo los derechos de los acreedores. El próximo paso para la entrada en vigencia de la Ley de Insolvencias, es su sanción y publicación por parte del Organismo Ejecutivo.

1. The Launch

GENERAL

Legislation

1. What main legislation is applicable to insolvencies and reorganisations?