On July 28, 2021, the Supreme Court of Canada (the "SCC") released its decision in Canada v Canada North Group Inc.[1] (2021 SCC 30) confirming that court-ordered super-priority charges ("Priming Charges") granted pursuant to the Companies' Creditors Arrang
In LCM Operations Pty Ltd, in the matter of 316 Group Pty Ltd (In Liquidation) [2021] FCA 324, the Federal Court considered whether a third party who has been assigned a company’s claim by a liquidator breached the Harman undertaking with respect to documents obtained through public examinations.
What happened?
The Arrium Series
Welcome to issue #2 of our Arrium Series, where senior members of the Baker McKenzie team involved in the successful defence of proceedings against the former CFO, former Treasurer and other former employees of the Arrium Group, consider key issues arising in those and related insolvent trading proceedings and from the judgment handed down on 17 August 2021.
In the recent decision of the Malaysian High Court in Re Top Builders Capital Bhd & Ors [2021] 10 MLJ 327("Top Builders"), Ong Chee Kwan JC examines the proof of debt exercise in a scheme of arrangement ("SOA") and the guiding principles governing the granting of leave to proceed with legal proceedings against a financially distressed company that has obtained a restraining order (moratorium) pursuant to a SOA.
This newsletter covers key updates about developments in the Insolvency Law during the month of July 2021.
We have summarized the key judgments passed by the Supreme Court of India (SC), National Company Law Appellate Tribunal (NCLAT) and the National Company Law Tribunals (NCLT). Please see below the summary of the relevant regulatory developments.
1) DEMAND NOTICE ISSUED BY OPERATIONAL CREDITOR BASED ON INVOICES CAN BE ISSUED IN FORM-3 INSTEAD OF FORM-4.
Many describe the United States as Canada's most important trade partner. Cross-border insolvency proceedings between the two jurisdictions are frequent and the recognition by one country's court of the other's bankruptcy orders is an important tool in facilitating the restructuring of companies with operations that spread across North America. A recent decision from the Ontario Court of Appeal (leave to appeal of which was denied by the Supreme Court of Canada) invites us to reflect on the delicate balance between comity for foreign orders and Canada's sovereignty over domestic laws.
On August 17, 2021, Basic Energy Services, L.P., along with several affiliates that provide operational support for oil and gas wells located in several US states, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of Texas (Case No. 21-90001). The company reports $100 to 500 million in assets and $500 million to $1 billion in liabilities.
7327 sayılı İcra ve İflas Kanunu ile Bazı Kanunlarda Değişiklik Yapılmasına Dair Kanun (“Değişiklik Kanunu”) 31516 sayılı ve 19 Haziran 2021 tarihli Resmî Gazete’de yayımlanarak yürürlüğe girdi.
Değişiklik Kanunu ile 2004 sayılı İcra ve İflas Kanunu (“İİK”)’nun uygulamasında yaşanan aksaklıkların giderilmesi ve özellikle konkordato sürecinin daha etkili hâle getirilmesi amaçlandı. Bu kapsamda; getirilen düzenlemeler aşağıda özetlenmektedir:
The Law numbered 7327 on the Amendments to the Code of Enforcement and Bankruptcy and Certain Laws (“Amendment Law”) was published in the Official Gazette dated 19 June 2021 and numbered 31516, and entered into effect on the same day.
The Amendment Law aims to eliminate the practical disruptions in the application of Enforcement and Bankruptcy Law numbered 2004 (“CEB”) as well as enhancing the concordat process. Regulations introduced in this scope are summarized below:
In brief
With the courts about to consider a significant and long standing controversy in the law of unfair preferences, suppliers to financially distressed companies, and liquidators, should be aware that there have been recent significant shifts in the law about getting paid in hard times.