Creditors’ statutory demands are a very powerful, and commonly used weapon by creditors. They are cheap and easy to issue, and the consequences for not dealing with one appropriately can be extremely serious – i.e. liquidation.
Because of this, the courts enforce strict compliance with the requirements imposed on a party seeking to rely on one, so creditors should ensure they are up to date on those requirements.
In the recent decision of AlphaBow Energy Ltd. (Re) (“AlphaBow”),[1] the Alberta Court of King’s Bench dismissed AlphaBow’s application to stay the Alberta Energy Regulator’s (“AER”) request for a security deposit for the duration of its restructuring proceedings.
Background
In a recent case, the High Court has provided important clarification on the treatment of retention monies, reinforcing the statutory trust obligations under the Construction Contracts Act 2002 (CCA).
The University of Georgia, through the University’s athletic association (UGAA), is seeking damages totaling $390,000 against a former football player, Damon Wilson II, after he elected to transfer to Missouri following the 2024 season. The demand stems from a clause in Wilson’s NIL contract that required him to forfeit the balance of his agreement if he transferred to another school.
Welcome back to Distressed Debt Legal Insights, Ropes & Gray’s new source of timely insights for professionals navigating the complex world of liability management. In this edition, we’re looking at how Anthology resolved an objection to its proposed non-pro rata DIP rollup.
Background
Anthology filed for Chapter 11 on Sept. 29 in the Southern District of Texas with a restructuring support agreement signed by 87% of first out lenders and 68% of second out lenders.
Harmonising EU insolvency law: colegislators reach agreement on compromise text for a new directive — key changes and what is next 8 DECEMBER 2025 EU insolvency law © A&O Shearman 2 EU directive harmonising certain aspects of insolvency law Overview and status The European Parliament and the Council (the co-legislators) reached political agreement on the proposed Directive harmonising certain aspects of insolvency law on 19 November 2025. The final compromise text was confirmed and circulated in early December 2025.
An assignment for benefit of creditors (an “ABC”) under the common law is an out-of-court tool for liquidating a business debtor’s assets in an efficient and credible manner.
Such a common law tool has been used, effectively and frequently, for many years in such states as Illinois and California.
Despite the out-of-court nature of an ABC under the common law, courts can still be enlisted to resolve discrete issues that may arise. Here is an example of a court’s involvement, within an ABC under the common law, to resolve an issue of compensation for the ABC assignee: