The following briefing provides a round-up of the Cayman legal and regulatory developments during the third quarter of 2022 that may be of interest to funds clients. We are pleased to note that there is nothing critical or requiring immediate action at this time.
Summary of recent legal and regulatory developments
New fees are soon to be introduced by The Insolvency Service in respect of the insolvency deposit required to commence a creditor’s bankruptcy petition and winding-up petition which will make it harder for many businesses to collect their debts.
事業再生・債権管理Newsletter 2022年10月号 6 本ニュースレターの発行元は弁護士法人大江橋法律事務所です。弁護士法人大江橋法律事務所は、1981年に設立された日本の総合法律事務所です。東京、大阪、名古屋、海外は上海にオフィスを構えており、主に企業法務 を中心とした法的サービスを提供しております。本ニュースレターの内容は、一般的な情報提供に止まるものであり、個別具体的なケースに関する法的アドバイスを想定したものではありません。本ニュースレターの内容につきま しては、一切の責任を負わないものとさせて頂きます。法律・裁判例に関する情報及びその対応等については本ニュースレターのみに依拠されるべきでなく、必要に応じて別途弁護士のアドバイスをお受け頂ければと存じます。 他の連帯債務者との関係で債務が消滅した場合における、 既になされた弁済の「法律上の原因」の有無 ～大阪地裁令和３年９月１６日判決にみる弁済後の不当利得返還請求の可否～ 第１ はじめに 「法律上の原因」がない経済的利益の移転が生じた場合、 当該経済的利益の移転によって損失を被った者から、利益を 受けた者に対して、不当利得返還請求がなされることがありま す（民法７０３条）。
In a recent decision, a 3 (three) judge bench of the High Court of Bombay (“Bombay High Court”) in the case of Jalgaon Janta Sahakari Bank Ltd. & Anr. v. Joint Commissioner of Sales & Anr, has held that the dues of secured creditors would rank superior to dues of state government upon sale of a secured asset under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”) and Recovery of Debts and Bankruptcy Act, 1993 (“RDDB Act”).
Two recent cases examine whether, given the impossibility to liquidate a company due to a corporate deadlock, a court can invalidate certain resolutions at the request of one shareholder.
The Insolvency Service has recently announced their proposal to increase the cost of deposits payable on creditors’ bankruptcy and winding-up petitions which are presented on or after 1st November 2022.
The proposal is as follows:
Bankruptcy Petition deposit increasing from £990 to £1,500
Winding-up Petition deposit increasing from £1,600 to £2,600
If the proposed changes are approved it will mean the overall fee to issue petitions (including the court fee) will be:
Heidi Chui, Stevenson, Wong & Co
This is an extract from the 2023 edition of GRR's The Asia-Pacific Restructuring Review. The whole publication is available here.
In summary
Directors who oppose company windings up with little more than a hope that a restructuring proposal may bear fruit may have to weigh their actions carefully going forward, following a recent decision by the Hong Kong Companies Court.
This week’s TGIF considers In the matter of Nicolas Criniti Pty Ltd (In Liquidation) [2022] NSWSC 1149 which examined the intersection between the winding up provisions in the Corporations Act 2001 (Cth) and the Building and Construction Industry Security of Payment Act 1999 (NSW).
Key takeaways
WHITE PAPER An Update on Insolvency in the Australian Construction Industry The construction sector in Australia has long been affected by insolvency and broader liquidity issues. In the last year, construction companies accounted for 26% of businesses that entered into insolvency, and insolvencies in the construction sector more than doubled. This year, contractors have been further squeezed by inflation, supply chain issues and labour market shortages. As the federal government has wound back its COVID-19 economic stimulus packages, further collapses seem inevitable.