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Rising distress? 2022 in statistics31 December 2022

Court exercises discretion to grant examination orders The Court of Appeal affirmed the High Court’s exercise of its discretion to grant orders that a company director be examined in Court notwithstanding that director was involved (as defendant in one instance and as the director of a defendant company in the other) in separate legal proceedings that have been commenced by the liquidator.

In 2021, several significant judicial decisions were rendered across Canada relevant to commercial lenders, businesses and restructuring professionals. This comprehensive report summarizes the key facts and core issues of importance in each case and provides status updates on the cases reported on in our February 2021 bulletin, Key Developments in Canadian Insolvency Case Law in 2020.

The Insolvency and Bankruptcy Code, 2016 empowers Financial Creditor, Operational Creditors, and Corporate Debtor to initiate the Corporate Insolvency Resolution Process (CIRP) upon a default being committed by a Corporate Debtor. CIRP involves the setting up of a Committee of Creditors (CoC) and approval of a resolution plan to restructure the Corporate Debtor, or the liquidation of the Corporate Debtor. Often, Creditors and Corporate Debtor prefer to reach amicable settlements instead of going through with the entire CIRP process.

Non-Performing Corporate Loan Toolkit for Banks

“To the man with a hammer, every problem looks like a nail.”

Demand for virtual currency services, including custody services, has soared in the past several years. Like their counterparts in traditional finance, these custodians are stewards of retail and institutional customer funds and serve an important and valuable function. However, as evidenced by a number of headline-grabbing failures during the lingering crypto winter, inadequate disclosures and poor custodial practices can seriously harm retail and institutional customers alike.

Inflationary pressures and increasing interest rates are expected to continue to have a negative impact on the global economy during 2023. In this article we consider restructuring options under BVI law available to companies in or approaching financial difficulties, when a BVI company will be considered to be insolvent, the duties of directors of financially distressed or insolvent BVI companies and practical steps and considerations for directors where a BVI company may be approaching insolvency.

Restructuring Options and Creditor Arrangements

Emergency legislation has introduced important changes to Hungarian insolvency laws that allow the debtor’s business to keep trading during insolvency.

The new rules apply to those debtors who are considered strategically important to the Hungarian economy and to those whose insolvency is declared under other emergency rules.

A Hong Kong court has severely criticised the provisional liquidators (PLs) appointed by the court in the company’s place of incorporation in the Cayman Islands, for trying to interfere with the rights of creditors in Hong Kong and to bypass the statutory scheme of winding-up in Hong Kong. In GTI Holdings Limited [2022] HKCFI 2598, the Honourable Madam Justice Linda Chan said it was a matter of concern to see that solicitors and counsel engaged by the PLs in Hong Kong "did not bring home to the provisional liquidators their duties owed to the creditors and to this court".

Cayman Islands companies have dominated the restructuring news cycle of late for a variety of reasons, including recent judicial commentary as to the effect of obtaining recognition under Chapter 15 of the U.S. Bankruptcy Code.