The Insolvency (Amendment) Bill 2023 (“Bill”) was passed by the Dewan Rakyat on 24 May 2023. It will next be tabled before the Dewan Negara. Once passed, the Bill will be cited as the Insolvency (Amendment) Act 2023 (“Amendment Act”) and will come into operation on a date to be appointed by the Minister in the Prime Minister's Department (Law and Institutional Reform) (“Minister”) by notification in the Gazette.

There may be hope on the horizon for insolvent Canadian cannabis companies who wish to seek recognition proceedings south of the border.

The German Federal Court of Justice (BGH) has ruled on the question of whether an agreement that grants release from a contract on grounds of insolvency or the opening of insolvency proceedings is effective.

Background

Modular construction has been heralded for several years now as a construction methodology that saves time, reduces waste and minimises cost. It is therefore unsurprising that modular construction forms part of the various "modern methods of construction" that are now being encouraged by the UK Government. Use of modular construction can range from isolated elements like bathroom pods to where the majority of the building is comprised of modules and is commonly encountered in housing, student accommodation and hotels.

Is an insolvent debtor’s pre-bankruptcy termination of a commercial lease a fraudulent transfer? The Third Circuit said no when it held that a lessor’s pre-bankruptcy termination of the debtors’ lease and purchase option “was not a transfer under Bankruptcy Code §548(a) (1)(B).” In re Pazzo Pazzo Inc., 2022 WL 17690158 (3d Cir. Dec. 15, 2022). But the Seventh Circuit held that a chapter 11 debtor’s pre-bankruptcy “surrender of [two] … leases to [its landlord] could be regarded as a preferential [or fraudulent] transfer.” In re Great Lakes Quick Lube L.P., 816 F.3d 482 (7th Cir. 2016).

The law regarding moratoriums imposed under Section 14 of the Insolvency and Bankruptcy Code^[1] (hereinafter referred to as the IBC 2016) has been often explained and clarified by various judicial pronouncements, which aptly interpret the multitudes contained in Section 14 of the IBC.

With increased stress in global, domestic, and regional economies, the number of Australian businesses at risk of bankruptcy is approaching a three-year high.

“How did you go bankrupt?

“Two ways. Gradually, then suddenly.”

- Ernest Hemingway, The Sun Also Rises

Whether from internal or external factors, every company at some point will experience financial stress. The key to avoiding the extreme zone of financial distress—insolvency and “suddenly” bankruptcy—is to be proactive early on—when financial challenges are progressing “gradually.”

The approval of the creation of an administrative convenience class (Administrative Convenience Class) comprising low value creditors to reduce the administrative burden on restructuring entities by the General Division of the Singapore High Court (High Court) in Re Zipmex Pte Ltd and other matters [2023] SGHC 88 (Re Zipmex) is a positive step in promoting Singapore as a preferred restructuring destination, particularly for crypto restructurings.

Background

The Supreme Court (“SC”) in the case of M. K. Rajagopalan v. Dr. Periasamy Palani Gounder & Anr., has held that, while commercial wisdom of the Committee of Creditors (“CoC”) must be respected, certain factors having a material bearing on the process of approval of the resolution plan should also be borne in mind.