In the recent decision of Paragon Offshore, No. 16-10386 (CSS), 2021 (Bankr. D. Del. June 28, 2021), the U.S. Bankruptcy Court for the District of Delaware (the court) addressed the issue of whether the Office of the United States Trustee (OUST) could collect its quarterly fees against assets that were previously transferred to a litigation trust (the litigation trust) free and clear of any and all claims, liens and other encumbrances pursuant to a confirmed plan of liquidation.

Since the global financial crisis, the Middle East restructuring and insolvency market has come a long way. Having sought to reduce their economies' dependency on oil revenues and become more attractive to international investors, the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) in particular have significantly developed the restructuring and insolvency toolbox available to creditors and debtors alike.

Insolvency practitioners and buyers of distressed assets beware: although the National Security and Investment Act 2021 (NSI Act) will come into effect in the UK on 4 January 2022, it has retrospective power to examine transactions from 12 November 2020.

Mandatory notification

Johnson & Johnson currently has approximately 25,000 lawsuits pending against it related to its talc products, including talcum powder and baby powder

COVID-19 and the resulting lockdown measures to limit outbreaks in Thailand have caused significant financial difficulties for many business operators, large and small. Whether a business is a creditor or debtor, there is a high likelihood they have faced or will face a default caused by the pandemic. This article identifies three legal options available when a party defaults—civil cases, bankruptcy actions, and business rehabilitation actions—and compares key elements associated with each option. For context, those three options are defined as follows:

On 2 August 2021, Treasury released a consultation paper on proposed reforms to improve creditors’ schemes of arrangement in Australia. The proposed reforms are intended to complement the simplified liquidation and debt restructuring process introduced for small businesses on 1 January 2021, as a result of the COVID-19 pandemic.

What is a scheme of arrangement?

Current U.S. bankruptcy law gives companies wide discretion to file a bankruptcy in the venue of their choice. A company can file for bankruptcy in any federal district where it has its “domicile, residence, principal place of business in the United States, or principal assets in the United States” or where an affiliate of the company has a pending bankruptcy case. Often a company whose business primarily is in California will file bankruptcy in another state where it might have a small corporate affiliate.

In June 2020, the "Anti-Crisis Shield 4.0" introduced a simplified form of restructuring proceeding into Polish law. This modified version of the procedure ushered in significant improvements for debtors, including a moratorium on enforcement action and four months to seek the consent of creditors to restructuring proposals, and to seek the approval of the arrangement with the court.

In May 2021, a landmark co-operation mechanism was implemented between Hong Kong and Mainland China in cross-border insolvency matters.

Liquidators from Hong Kong can now apply to the courts in three Mainland "pilot cities" (ie Shanghai, Shenzhen and Xiamen) for recognition and assistance, provided that:

The German Code for Restructuring and Insolvency Law Development (SanInsFoG) came into force in early 2021, resulting in significant changes to the Insolvency Code. The changes impact both self-administration proceedings (where the debtor retains possession and control of its assets in insolvency proceedings, usually to implement a restructuring) and protective shield proceedings (where the debtor develops an insolvency plan). The requirements for self-administration proceedings have become stricter.

Liquidity forecast