There are few things as daunting to a vendor or supplier as its counterparty’s bankruptcy. The likelihood of a significantly discounted recovery for goods and services provided and potential loss of a customer may have long-lasted impacts on profitability. Even worse, however, is the prospect that payments received in good faith prior to a debtor’s bankruptcy filing may be at risk of recoupment. In this alert, we address the risk that such payments are voidable as preferential transfers.

Mac Interiors Limited (the Company), a Northern Ireland-incorporated company, has become the first company incorporated outside the Irish State (and the EU) to have an examiner appointed under the examinership regime provided for in section 509 of the Companies Act 2014 (the 2014 Act).

Introduction

As the cannabis industry matures, there will be winners and losers. Losers lack access to the U.S. Bankruptcy Code. Marijuana related assets cannot be sold free and clear of liens and encumbrances via the tried and true bankruptcy section 363 sale, which leaves the loser’s creditors without the best tool to maximize the value of the loser’s assets, and deprives acquirers of a federal court order conveying assets. What’s the state of play, and what’s the alternative for the losers, their creditors, and the companies that would acquire them?

STATE OF PLAY

The National Company Law Appellate Tribunal at Chennai (“NCLAT”) has in M/s. KK Ropeways Limited v. M/s Billion Smiles Hospitality Private Limited¹inter alia held that an arbitral award cannot be enforced under Section 9 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) when a challenge under Section 34 of the Arbitration and Conciliation Act, 1996 (“Arbitration Act”) has been preferred against such an award.

Brief Facts

On July 14, the U.S. Court of Appeals for the Ninth Circuit partially affirmed and partially reversed a district court’s dismissal of an FDCPA suit. The district court reviewed plaintiff’s claims under the FDCPA, which alleged that defendants violated the bankruptcy court’s order discharging his debt and knowingly filed a baseless debt collection lawsuit.

HopgoodGanim Lawyers recently acted for R.W Pascoe Pty Ltd in successfully setting aside the deed of company arrangement (DOCA) proposed by Crimson Fresh Produce Pty Ltd.

The underestimated danger of personal liability

Just as "The Seven Deadly Sins" according to historian Sebastian Haffner (1964) led to the downfall of the German Empire in 1918, there are seven deadly sins for the management of a GmbH, GmbH & Co. KG or stock corporation in connection with crisis and insolvency. Although these do not result in the fall of an empire, they do result in the personal liability of the management. Moreover, that often leads to the destruction of the economic existence.

Misled or defrauded shareholders may rank equally with creditors in liquidations of insolvent funds

In a significant order passed on June 28, 2023, in the case of Ronak Industries vs.