The bankruptcy of the Mt. Gox cryptocurrency exchange in 2014 was a pivotal moment in cryptocurrency history. It demonstrated the vulnerabilities of early cryptocurrencies and saw the worst fears of the industry become a reality. However, in the years since it has also provided an excellent example of the successful tracing and recovery of a variety of asset classes. Creditors have recently received the first distributions from the recovered assets of Mt Gox, in stark contrast to the initial claims that access to the assets had been lost forever.

Background

EIOPA Consultation on the new Proportionality Framework under Solvency II

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Overview

In August this year, the European Insurance and Occupational Pensions Authority ("EIOPA") published a public consultation ("Consultation") on the new proportionality framework proposed in the Provisional Agreement on amendments to the Solvency II Directive ("Provisional Agreement").

Introduction

On 9 May 2024, the Oireachtas enacted the Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024 (“the Act”). Part 4 of this Act amends certain provisions of the 2014 Companies Act.

Notification Obligations

The Act inserts new subsections under sections 571, 573, and 594 of the Act of 2014 for the notification of relevant parties. This means that:

Introduction

The proud sporting nations of Ireland and England have for some time traded blows and bragging rights within the Six Nations Tournament as the two pre-eminent and consistent "Home Nations" rugby teams. While the two sides share some similarities in the rebuilding process following the World Cup in France 2023, ahead of this Saturday's clash, few can argue with Ireland's emphatic start to this year's tournament. England, however, can never be written off at Twickenham, so a potential blockbuster awaits!

1. SOLVENCY II

1.1 Solvency II Directive review: Provisional political agreement reached on proposed Solvency II amending Directive

The Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Bill 2023 (the “Bill”) proposes amendments to the existing collective redundancy regime in insolvency situations. If enacted, the Bill will deliver on key Programme for Government commitments detailed in the Plan of Action – Collective Redundancies following Insolvency.

The background to this case stems from a High Court judgment in 2022, where exemplary damages were awarded against a receiver in the sum of €550,000. The damages were awarded after a receiver had taken possession of and sold certain properties without first obtaining a court order under the Land and Conveyancing Law Reform Act 2009 (the “2009 Act”).

Following on from the UK Supreme Court decision in Sequana (discussed here), the recent UK High Court (UKHC) decision in Hunt v Singh [2023] EWHC 1784 (Ch), further considered the duty of directors to take into account the interests of creditors in certain circumstances.

The number of company insolvencies in 2023 increased by over a third compared to 2022. The hospitality sector was particularly badly affected, with 53% more insolvencies than in 2022.

It appears that 2024 will be similarly challenging for companies in the hospitality sector. The Restaurant Association of Ireland (RAI) has set out the main challenges faced by the industry, including increased energy and labour costs, and the VAT rate reverting to 13.5% after having been reduced to 9% during the covid-19 pandemic.

Many Irish businesses face the challenge of meeting warehoused debt. One option available is to address the debt via the Small Company Administrative Rescue Process (“SCARP”).

Government Schemes

During the Covid-19 pandemic, a lot of Irish companies took advantage of Government schemes, to include the Employment Wage Subsidy Scheme (“EWSS”), the Covid Restrictions Support Scheme (“CRSS”) and Debt Warehousing. PAYE, PRSI, USC, EWSS and CRSS overpayments were all warehoused.

What is Debt Warehousing?