Gurbinder Grewal and Michael Wright in the UK Construction Team explain the knock on effects of insolvencies and the mitigating steps that can be taken. Early warning signs of looming insolvency can be spotted.

Key points

In Nicholas Stewart Wood and David John Standish (as the joint trustees in bankruptcy of Karl Eric Watkin) v Kate Rebecca Watkin [2019] EWHC 1311 (Ch), trustees in bankruptcy sought to establish that a bankrupt (theBankrupt) was the sole beneficial owner of three properties (theProperties), ostensibly purchased by him for his adult daughter. The High Court refused the application and held that the Bankrupt was not the sole beneficial owner of the Properties.

Against the backdrop of the insolvency of Scottish companies carrying on business in India, a recent decision of the Inner House of the Court of Session has considered the competency of seeking declaratory orders in petition procedure.

Background

In October 2016, we reported on a Court of Session decision which concerned three Scottish registered companies carrying on business in India and which had been placed into administration under the Insolvency Act 1986.

Section 127 of the Insolvency Act renders void any disposition of property by a company made in the period between presentation of the winding up petition and the making of a winding up order on that petition unless the court orders otherwise. Guidance on applications for validation orders is given in the Insolvency Practice Direction (“PD”).

Reliance Wholesale Ltd v AM2PM Feltham Ltd [2019]

In the recent case of Reliance Wholesale Ltd v AM2PM Feltham Ltd, the High Court provided some much needed guidance and clarification as to how the Court should approach the issues of costs

when a petition debt is dismissed following a payment in full being made by the debtor company, even when such a payment is made ‘under protest’ with no admission of liability as to the petition debt.

Background

This ThinkHouse TUPE Club Q&A deals with our Top 10 questions on:

• the key employment issues in Administrations and Liquidations; and
• how TUPE applies when there is an insolvency situation.

Q1. What is the effect of insolvency on contracts of employment?

There are various types of insolvency proceedings and these are designed to achieve various different end results. The different types of insolvency also have different consequences for the entity and employees.

Administration

Navigating the road between regulatory compliance and business rescue

When dealing with a goods vehicle operator in an insolvency context:

Navigating the road between regulatory compliance and business rescue

When dealing with a goods vehicle operator in an insolvency context:

In an effort to think about something other than Brexit, the Business Support & Insolvency team at Boyes Turner have put together a snap-shot of some of the significant updates which have happened in the world of insolvency (as well as in the team) in the last quarter.

What have we been up to?

If you own a flat, it may be tempting to rent it out whilst you are on holiday or for longer, to earn some extra income. However, a recent court case held that renting a flat out on Airbnb breached the tenant’s lease.