In the most significant decision of the decade on a matter of U.S. bankruptcy law, the U.S. Supreme Court rendered its highly anticipated decision in Harrington v. Purdue Pharma L.P., 603 U.S. ____ (2024) on June 27, 2024, striking down the non-consensual third party releases that were the cornerstone of Purdue Pharma's Chapter 11 Plan of Reorganization by a vote of 5-4. In doing so, the Court said:

The Judicial Committee of the Privy Council has decisively redrawn the boundaries between arbitration agreements and insolvency proceedings in the case of Sian Participation Corp (In Liquidation) v Halimeda International Ltd.[1]

On June 27, 2024, the United States Supreme Court issued its decision in Harrington v. Purdue Pharma LP, addressing the question of whether a company can use bankruptcy to resolve the liability of non-debtor third parties. The Supreme Court, in a 5-4 decision, held that the bankruptcy code does not authorize a release and an injunction that, as part of a plan of reorganization under Chapter 11, effectively seek to discharge the claims against a nondebtor without the consent of the affected claimants.

Overview

The scope and extent of a director's duty is of particular interest to officeholders of companies and their D&O insurers.

How can creditors reduce the risk of a fixed charge being characterised as floating?

The determination as to whether a charge over a valuable asset is fixed or floating can be crucial to a creditor's recovery in an insolvency. To have two cases over the course of little more than a year providing detailed analysis of the nature of fixed and floating charges is indeed a treat. Are there any practical steps creditors can take to reduce the risk of a fixed charge being characterised as floating?

Fluctuating assets?

Last week, in a 5-to-4 decision in the case ofHarrington, United States Trustee, Region 2 v. Purdue Pharma L.P, et al., the U.S. Supreme Court struck down the ability of bankruptcy courts to order non-consensual third-party releases (i.e., claims held by non-debtors against non-debtor third parties) as part of a Chapter 11 plan.

Restructuring Plans: should an opposing creditor be granted security for costs? Might that open the floodgates where companies are by definition “distressed,” or was this particular Plan more akin to ordinary adversarial litigation? Read our summary below.

Following the recent conflicting decisions in HQP Corporation (in official liquidation)1(HQP) and Direct Lending Income Feeder Fund, Ltd (in official liquidation)2 (DLI), Simon Dickson and Laura Stone of Mourant Ozannes (Cayman) LLP consider whether shareholder misrepresentation claims can be admitted in a Cayman Islands liquidation.

On 8 May 2024, the General Court of the EU annulled the Commission decision of 26 July 2021 approving restructuring aid to German airline Condor following an annulment action lodged by Ryanair. The Commission should have opened a formal procedure because of doubts about the compatibility of the aid. The General Court rejected Ryanair’s argument relating to the impact of the aid on its competitive position.

Background

引言

在新《公司法》实施的第一天，即2024年7月1日，北京市西城区人民法院微信公众号发布了其审结的首例适用新《公司法》第54条规定的加速到期规则的案件。

在该案中，经债权人申请，西城法院在执行程序中追加案涉公司的股东张某为被执行人。进而，西城法院根据新《公司法》第54条，对案涉公司股东张某适用加速到期规则，判决其履行提前缴纳出资的债务，在其未出资的范围内向债权人承担补充赔偿责任。

一、西城法院案例简析[1]

（一）案情概要

李某系案涉公司的前员工。因该公司拖欠工资，李某提起劳动仲裁。经仲裁委调解，双方达成调解协议，约定：公司应于2023年4月底前支付拖欠李某的工资70,000余元。随后，仲裁委据此出具了《调解书》。

因该公司未履行《调解书》项下的付款义务，李某以该公司为被执行人向西城法院提出强制执行申请。由于该公司名下没有可供执行的财产，西城法院裁定终结本次执行程序。