A previously unsettled aspect regarding the High Court’s (Court) jurisdiction to appoint an examiner to a company which is not formed or registered under the Companies Act 2014 (2014 Act), has been considered in the recent case of In the matter of MAC Interiors Ltd [2023] IEHC 395.
„Lieber den Spatz in der Hand als die Taube auf dem Dach“ ist eine alt Redewendung. In anderen Ländern lautet das Sprichwort: "Ein Vogel in der Hand ist besser als zehn in der Luft". Auch in Italien wir bei diesem Sprichwort auf Geflügel abgestellt: "Besser ein Ei heute als ein Huhn morgen." Die Bedeutung der Sprichwörter ist identisch. Man sollte sich mit einem kleinen, aber sicheren Vorteil zufrieden geben, selbst wenn es so erscheint, als wäre dies nicht sehr viel wert.
The English Court of Appeal has clarified the interpretation of two aspects of s.423 of the Insolvency Act 1986, the legislation which provides a mechanism for the avoidance of transactions which have been made for the purpose of defrauding creditors:Invest Bank PSC v Ahmad Mohammad El-Husseini [2023] EWCA Civ 555.
In re Patacsil, 2023 WL 3964908 (Bankr. E.D. Cal. June 9, 2023)
Five years after the collapse of construction company giant, Carillion PLC, its former Chief Financial Officer (CFO) Zafar Khan has been disqualified from acting as a company director, or being concerned in its management, for 11 years. This is just 4 years short of the maximum period of 15 years, reflecting the seriousness of the allegations against him. The Insolvency Service accepted an undertaking from Mr Khan in settlement of its action against him.
The construction industry trade press frequently writes about administrations in the industry. Whilst the Insolvency Service's figures show that around one construction company went into administration every other day in Q1 2023, significantly higher numbers went quietly into liquidation during the same period.
In certain circumstances the official liquidator of a Cayman company may be able to take action to recover assets which have been transferred in the run up to the company’s insolvency. It is important for those concerned with the affairs of a Cayman company in the twilight of insolvency to be aware of the statutory powers available to the official liquidator and the Grand Court in the Cayman Islands.
Summary
The High Court (Mr Justice Quinn) has in the case of Mac Interiors Limited [2023] IEHC 395appointed an examiner by way of the direct appointment procedure to a company incorporated outside of the area to which the European Insolvency Regulation (Regulation (EU) 2015/848) (the “EIR”) applies. This is the first time the procedure has been used by the Irish courts in such circumstances.
The Federal Labour Court (Bundesarbeitsgericht, BAG) had to decide in which case a social compensation plan endowment by the conciliation committee is economically unjustifiable for a company outside of insolvency. This shall be the case if the fulfilment of the social compensation plan obligation would lead to illiquidity, balance sheet over-indebtedness or an unacceptable reduction of the company's equity. If the endowment was economically unjustifiable, the discretion of the conciliation committee was exceeded and the social compensation plan therefore invalid.
We have previously discussed the growing list of judicial decisions addressing the appropriate remedy for overpayment of U.S. Trustee (“UST”) quarterly fees. In U.S. Tr. Region 21 v. Bast Amron LLP (In re Mosaic Mgmt. Grp., Inc.), No. 20-12547, 2023 WL 4144557 (11th Cir.