The High Court has set out the principles that apply to the construction of questions in an insurer’s automated online underwriting system and the circumstances in which an insurer’s questions may lead to waiver of the right to be told about certain information. In this case, the Court considered the construction and scope of the insurer’s standard question concerning previous insolvencies, and held that the wording used waived the insurer’s right to be told about other insolvency events not caught by the question.

Background

Any funder offering invoice finance facilities in the UK whose borrowers have (or may in the future have) debtors with a Scottish connection should be aware of the different rules applicable to invoice finance in Scotland.  

Scots law is less user-friendly to invoice financiers than English law, and the following is a brief, high level guide to some of the key issues to consider in invoice finance transactions which involve Scottish debts or debtors.

When is Scots law relevant?

The German Act on the Stabilisation and Restructuring Framework for Business (StaRUG) came into force on 1 January 2021, incorporating the EU Restructuring Directive into German law. It provides the first pre-insolvency restructuring framework for the reorganisation of companies facing "imminent illiquidity" and the possibility of involving dissenting creditors. The restructuring plan – which is very similar to the English Scheme of Arrangement and the German insolvency plan – is the central instrument.

Section 1 StaRUG

Passing the Golden Thread through the Eye of a Needle In Singularis 1 , as is well known, the Privy Council Board considered the doctrine of modified universalism whereby, broadly speaking, a court will give such assistance as it can to foreign insolvency proceedings, as is consistent with local law and local public policy, so as to ensure that a company's assets are distributed under a single system; and held by a majority that there is a common law power to assist a foreign insolvency, although the power could not be used to enable foreign liquidators to do something that they could not d

The Bankruptcy Protector

The UK government has lifted the current restrictions on statutory demands but imposed new temporary requirements for winding-up petitions presented from 1 October 2021 until 31 March 2022. The measures aim to protect companies from aggressive creditor enforcement as the economy opens up and other protections are lifted.

New requirements

During the third trimester of 2021, 4 petitions in bankruptcy were filed, notified, and registered on the Federal Insolvency Institute's records.[1]

Altan Redes, S. A.P.I. de C. V. (Altan).

Altan, a telecommunications company, filed a voluntary petition in bankruptcy in the reorganization stage on July 14, 2021, before a District Court in Mexico City.

Demar Instaladora y Constructora, S. A. de C. V. (Demar).

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Jurisdictions across the globe have sought to expand their restructuring toolkits – spurred on by Governments seeking to support business during the pandemic. This has had a significant impact on the options available when restructuring business in Asia Pacific.

Introduction

Chul Man Kim, Sun Kyoung Kim, Sy Nae Kim and Woo Suk Jung, Yulchon LLC

This is an extract from the 2022 edition of GRR's the Asia-Pacific Restructuring Review. The whole publication is available here.

In summary