As far as they go, restructuring plans have worked well since they were first introduced 3 years ago. This is reflected in the most recent review of CIGA published by the Insolvency Service which reflects favourably on this new insolvency measure. However, there are still some barriers to its use.
Government concludes that the permanent Corporate Insolvency and Governance Act 2020 measures have been "broadly welcomed", although possible refinements identified A 'Post-Implementation Review' carried out by the Insolvency Service has concluded that the restructuring plan, the standalone moratorium, and the suspension of contractual termination (ipso facto) measures introduced by the Corporate Insolvency and Governance Act 2020 (CIGA) have all been broadly welcomed by stakeholders and are seen as positive additions to the UK's insolvency and restructuring framework. The review
Key Legislations
(1) The Insolvency Law 2020; (2) The Insolvency Rules 2020 issued by the Union Supreme Court of Myanmar; and (3) The Notification No. 95/2020) dated 3rd November 2020 of the Directorate of Investment and Company Administration (“DICA”).
Voluntary Winding Up
The shareholders of a company can voluntarily wind up the company by holding a general meeting and passing a resolution to wind up the company under Section 147(a) of the Insolvency Law.
The new Belgian restructuring plan for large enterprises: secured creditors no longer entitled to the reorganisation value.
The long anticipated law of 7 June 2023 implementing the European Directive on restructuring and insolvency brings about a major reform of Belgian insolvency law. Among various other innovations, it introduces a new judicial reorganisation through collective agreement for large enterprises.1
The new law will apply to all procedures opened as from 1 September 2023.
An interim government report has concluded that the restructuring plan, the standalone moratorium, and the restriction on contractual termination (ipso facto) measures introduced by the Corporate Insolvency and Governance Act 2020 (CIGA) satisfy their policy objectives. The report is part of the statutory review which must be carried out within three years of the measures coming into force.
The Court of Appeal in Hunt v Ubhi has confirmed that insolvency practitioners seeking freezing orders are subject to the default requirement of providing an unlimited cross-undertaking in damages.
Bankruptcy courts possess broad discretion to dismiss chapter 11 bankruptcy cases for “cause” under Section 1112(b) of the Bankruptcy Code. While the Bankruptcy Code enumerates a long (though non-exhaustive) list of instances when a case may clearly be dismissed for cause, courts generally agree that cases may also be dismissed under Section 1112(b) for the classic catch-all reason—if they are filed in “bad faith.”
The government’s Insolvency Service published its Post Implementation Review of the Corporate Insolvency and Governance Act 2020 (CIGA) on 27 June 2023. The overall conclusion from the data collected, including a survey of insolvency practitioners, is that the permanent CIGA measures have been broadly welcomed by stakeholders and are seen as a positive addition to the UK’s rescue framework.
The economic clouds continue to darken alongside the incessant rainstorms outside, and people are paying closer attention to the forecasts to understand what to do to keep dry.
As interest rates continue to rise, and many commentators describe a challenging economic outlook amid an extending inflationary cycle, one only has to look at the recent company collapses in the construction sector to see the struggle that businesses are facing. Times are, and certainly will be, tough for a large number of people, and there are clearly sectors in distress.
In Denaxe Limited v Cooper & Rubin, the Court of Appeal has recently considered the important issue of immunity from suit against a party who has previously sought the Court’s approval for a particular course of action. This is commonly utilised by trustees (under CPR 64) and insolvency practitioners (for example under CPR 69 and Schedule B1 of the Insolvency Act 1986) when faced with difficult questions concerning entitlements and distributions to different classes of beneficiary or creditor.