This week’s TGIF considers a recent decision that provides guidance on how and when a liquidator can sell partnership assets held by an insolvent corporate partnership manager to satisfy creditors’ claims.
Key Takeaways
Introduction
National Company Law Tribunal (“NCLT”) was introduced in the Companies Act, 1956 in the year 2002. However, despite that, the erstwhile Company Law Board continued to function and NCLTs remained only on the statute book. It was only in late 2016 when the Insolvency & Bankruptcy Code, 2016 (“IBC”) was notified, that the NCLTs became operational.
Exclusive Jurisdiction
On Nov. 11, 2021, U.S. Bankruptcy Judge Craig Whitley in Charlotte, North Carolina ordered to move LTL Management LLC’s chapter 11 bankruptcy case to New Jersey after finding that LTL Management had used the “Texas Two-Step” to manufacture jurisdiction in North Carolina improperly. LTL Management is a subsidiary of Johnson & Johnson and a defendant in thousands of talc-related tort claim lawsuits. In re LTL Mgmt. LLC, No. 21-30589, 2021 BL 439798 (Bankr. D.N.J. Nov. 16, 2021).
Key Points
El pre-pack concursal se está implementando en España de manera paulatina a través de diversos protocolos y resoluciones judiciales. Ofrecemos un mapa desde el que se podrá acceder a las novedades que vayan surgiendo en este terreno.
Under Hong Kong law, the terms “insolvency”, “liquidation” or “winding-up” are used with reference to companies, and “bankruptcy” is used in relation to individuals. The former are primarily regulated by Companies (Winding Up and Miscellaneous Provisions Ordinance) (CWUO) (Cap. 32), and the latter by the Bankruptcy Ordinance (Cap 6). The article below focuses on the corporate insolvency regime, in relation to financially distressed companies which are unable to pay their debts or discharge their payment obligations.
The Bankruptcy Protector
Most bankruptcy practitioners are familiar with the intentionally broad scope of discovery under Bankruptcy Rule 2004. However, there are limits to this discovery and the “pending proceeding” rule can be a useful tool to limit the scope of discovery in the appropriate circumstances.
Bankruptcy Rule 2004
A couple who were undischarged bankrupts have not been successful in seeking an exemption under the bankruptcy law to exclude certain assets from being divisible amongst the creditors of their bankrupt estates. Particularly, the exemption sought required that their interests in the disputed assets (cash, shares and residential properties) be held by way of interests in their self-managed superannuation fund (SMSF).
On 4 November 2021, the High Court of Australia heard the arguments put forward by Wells Fargo Trust Company, National Association and Willis Lease Finance Corporation, together Wells Fargo, and the administrators (the Administrators) of the Virgin Australia Airlines group, which entered into administration on 20 April 2020. The dispute primarily concerned who should pay for the redelivery of four aircraft engines capable of being used on B737s (the Engines) to the lease redelivery location in Florida.
The pandemic impacted a number of businesses in Poland. To prevent some of its negative consequences a moratorium on the filing of bankruptcy declarations was introduced in Polish law on 13 April 2020.
We are delighted to see that yesterday 7 December 2021, the Companies (Rescue Process for Small and Micro Companies) Act 2021 was commenced. The process is designed to make rescue more accessible and affordable to small/micro companies that are in distress but fundamentally viable. The Department of Enterprise, Trade & Employment has launched a dedicated web page in relation to the process.