• “While the pre-petition Debtor may have consented to waiver of the automatic stay in favor of [secured creditor], . . . other creditors did not”; and
• “The automatic stay is designed to protect both debtors and creditors alike.”

In re DJK Enterprises, LLC, Case No. 24-60126, Doc. 196, at 13 (Bankr., S.D. Ill., February 13, 2025).

In re DJK Enterprises

Introduction

A trustee-manager, in the context of a business trust, actively runs the trust's operations while safeguarding the interests of investors. In the course of acting as a trustee-manager, the entity may incur liabilities in relation to activities of the business trust. How are these liabilities treated in a restructuring and insolvency? And can a trustee-manager propose a scheme of arrangement for debts incurred in its capacity as trustee-manager?  

Consolidation of business by way of a merger is a widely accepted mechanism for corporate restructuring.

Overview

It has been just over 6 years since the Bill for the Prescription (Scotland) Act 2018 ("the 2018 Act") received royal assent. Sections 5 and 13 of the 2018 Act came into force, perhaps earlier than most anticipated, on 1 June 2022. Since then, depending on who you speak to, you are likely to hear differing opinions on whether enough has been done to re-balance the 'defender friendly' discoverability test developed though cases such as Morrison and Gordon's Trustees.

The case of SBP 2 S.À.R.L v 2 Southbank Tenant Limited [2025] EWHC 16 (Ch) highlights the importance of careful drafting and robust legal advice when looking to forfeit a lease.

Background

In the March 2025 edition of the Restructuring Department Bulletin, we highlight recent decisions and developments impacting the restructuring arena and share the latest news on the Paul, Weiss Restructuring Department.

The judgement of Hodge Malek KC, sitting as a deputy High Court judge, in Marko Ventures Ltd v London Antiaging Clinic Ltd [2025] EWHC 340 (Ch) deals with a contested application for an administration order under para 12(1)(c) Sch B1 Insolvency Act 1986. The order appointing joint administrators was sought in respect of London Antiaging Clinic Ltd by Marko Ventures Ltd, the majority shareholder in and principal funder of the company, which runs a health, beauty and wellbeing clinic in London.

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Parkside’s Derek J Y Chan, instructed by Tanner De Witt, acted for the successful Plaintiffs, China City Construction (International) Co., Limited (In Creditors’ Voluntary Liquidation) and Dingway Investment Limited (In Compulsory Liquidation), both acting through their liquidators, in obtaining an anti-suit injunction (“ASI”) to restrain China City Construction & Development Co., (HK) Limited from continuing proceedings (“the Beijing proceedings”) it had commenced in the People

Small business restructurings (SBR), which allow companies with less than $1 million in liabilities (other than employee entitlements) to restructure their unsecured debts, are increasing in popularity. SBRs now amount to about 25 per cent of all monthly company insolvencies, and outnumber voluntary administrations.

In this article, from knowledge gained in advising small business restructuring practitioners, and from wider industry commentary, we discuss some of the good, and not so good, aspects of the SBR regime.

The good