With contributions by Deirdre Carey Brown, ForsheyProstok LLP
A company is pursuing a high-value claim against a defendant. The case is strong on the merits, and a substantial recovery appears to be in the offing.
That is, until the defendant files for bankruptcy.
Background to the Restructuring Plan
The UK has introduced the Restructuring Plan; a new, flexible court supervised restructuring tool. The Restructuring Plan draws upon features of the existing Companies Act 2006 scheme of arrangement procedure (which remains available) but includes features which are new to the UK but similar to those under U.S. Chapter 11 bankruptcy proceedings.
A bankruptcy judge in the Middle District of Florida recently sustained a Chapter 7 trustee’s objection to a non-Florida resident debtor’s attempted claim of the Florida homestead exemption. Although the debtor had lived in her Florida home for more than 20 years, she was not a United States citizen or a permanent resident with a so-called “green card.” Additionally, none of the debtor’s family members also living in the home were citizens or permanent residents.
A recent decision by the United States District Court for the Southern District of New York highlights directors’ fiduciary duty to evaluate all aspects of multi-stage transactions, including those portions to be effectuated post-closing by successor directors.
Hervorming van de insolventiewetgeving
Meer dan twee maanden hebben we er op moeten wachten, maar op 21 maart 2021 kwam eindelijk de goedkeuring van de wet die de insolventiewetgeving gedeeltelijk en tijdelijk hervormt.
Dit was bijna twee maanden nadat het algemene moratorium op faillissementen dat sinds 28 oktober 2020 van kracht is, afliep.
1. Waarom deze wetgevende tussenkomst noodzakelijk was
Following significant deliberations by the Insolvency Law Sub-Committee chaired by Mr. M.S. Sahoo (Chairman of the Insolvency and Bankruptcy Board of India), along with other advisors, including our founding partner Mr. Bahram Vakil, the Government of India, has on April 04, 2021 notified the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 to introduce a framework for pre-packaged insolvency resolution of micro, small and medium enterprise companies (‘PPIRP’).
Cass. Com., 10 mars 2021, n°19-12.825
Dans le cadre d’une procédure de liquidation judiciaire, un liquidateur a assigné directement et conjointement le dirigeant de la société et son assureur pour demander leur condamnation solidaire au paiement de l’insuffisance d’actif des sociétés sur le fondement des articles L. 651-2 du code de commerce et L. 124-3 du code des assurances.
Réforme de droit de l'insolvabilité
On l’attendait depuis bientôt deux mois, voire plus : le 21 mars 2021, une loi réformant partiellement et temporairement le droit de l’insolvabilité a été votée.
Cette loi intervient presque deux mois après la fin du moratoire général sur les faillites en place depuis le 28 octobre 2020 et qui prenait fin le 31 janvier dernier.
1. Pourquoi cette intervention législative était nécessaire
Protection of the share capital is one of the fundamental principles of the Turkish Commercial Code [“TCC”]. In this respect, capital loss and negative equity [the so-called “technical insolvency”] are regulated under Article 376 of the TCC, and a Communiqué was enacted to set the rules regarding the application of this Article.
Pre-packs sales are an important arrangement within Administrations and insolvency law. However, their usage has sometimes been considered “controversial”. In response to criticism and following a recent review of existing industry measures, the Government introduced The Administration (Restrictions on Disposal etc. to Connected Persons) Regulations 2021 (“the Regulations”). Coming into force on 30 April 2021, the Regulations will provide a new legal framework for pre-packs.