In the latest edition of Going concerns, Stephenson Harwood's restructuring and insolvency team covers the use of lock-up agreements in schemes of arrangements, and the developments in Singapore and Hong Kong as regards recognition of foreign insolvencies. Our final article is a must-read for lenders, discussing the circumstances under which security may be unwound as a undervalued transaction.

Content

How has HMRC managed its metamorphosis from benevolent supporter of businesses during the pandemic to hard-nosed tax collector?

On the 29th July 2022, the European Union (Preventive Restructuring) Regulations 2022 (the ‘Regulations’) were signed into law by the Minister for Enterprise, Trade and Employment.

On the 29th July 2022, the European Union (Preventive Restructuring) Regulations 2022 (the ‘Regulations’) were signed into law by the Minister for Enterprise, Trade and Employment.

BVI | CAYMAN ISLANDS | GUERNSEY | HONG KONG | JERSEY | LONDON mourant.com 2021934/84097043/1 GUIDE Insolvency procedures for Guernsey companies Last reviewed: August 2022 Contents Introduction 2 Modern corporate insolvency proceedings 2 Administration 2 Liquidation 3 Voluntary liquidation 3 Compulsory liquidation 3 Scheme of arrangement 4 Statutory process 4 Three-stage mechanism 4 Approval and challenges 4 Receivership 5 The traditional procedures 5 Désastre 5 Saisie 6 Out-of-court restructurings and consensual workouts 6 Legislative changes 6 Conclusion 7 Contacts 7 BVI | CAYMAN ISLANDS |

There are various ways to wind up or liquidate a limited liability company. Each method will essentially realise the assets of the company and distribute the proceeds to the company’s creditors or shareholders, but they are individually unique as to the processes that need to be followed.

One such method is a Creditors’ Voluntary Liquidation.

What is a Creditors’ Voluntary Liquidation?

The Supreme Court in its recent judgement Kotak Mahindra Bank Limited v. Kew Precision Parts Private Limited & Others¹, has held that an application to initiate corporate insolvency resolution process (“CIRP”) against a corporate debtor is maintainable in respect of a time barred debt, if the debtor has after the expiry of the limitation period, agreed to repay the same. 

Brief Facts

Introduction

This week’s TGIF examines a recent NSW Supreme Court decision that illustrates the circumstances in which a person will be regarded as a ‘de facto director’ and the duties owed to creditors when facing insolvency.

Key takeaways

Introduction

In May 2022, there were a total of 1,817 company insolvencies in England and Wales. Overall company insolvencies in May 2022 were 34% higher when compared to May 2019 (pre-pandemic) and 79% higher than insolvencies recorded in May 2021.

More insolvencies means more directors being issued director questionnaires from liquidators or administrators asking them to explain their prior conduct.

Good afternoon. Here are our summaries of the civil decisions of the Court of Appeal for Ontario for the week of August 8, 2022.