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    NCLAT: Financial creditor can maintain an application under Section 7 of the IBC which is only relating to the interest component due, without the principal amount becoming due and payable
    2022-12-05

    In the recent decision of Base Realtors Private Limited v. Grand Realcon Private Limited, the National Company Law Appellate Tribunal, New Delhi (“NCLAT”) has upheld the maintainability of an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) relating to the component of interest due and payable, without asking for the principal amount which has not yet become due and payable.

    Brief Facts

    Filed under:
    India, Insolvency & Restructuring, Litigation, JSA, Insolvency, Insolvency and Bankruptcy Code (India), National Company Law Tribunal
    Authors:
    Dheeraj Nair , Vishrutyi Sahni , Ridhima Sharma
    Location:
    India
    Firm:
    JSA
    Disqualification order granted against Jersey company director
    2022-12-05

    In the recent judgement of In the matter of SPARC Group Limited (en désastre) [2022] JRC 194 (SPARC Group), the Royal Court of Jersey considered the appropriate test for the making of a disqualification order against a director, with the stark nature of the facts justifying a lengthy term of disqualification.

    Background 

    The application for a disqualification order was made by the Viscount, in respect of Andrew Jeremy Mills (Mr Mills), who was the sole director of SPARC Group Limited (the Company), a property development business. 

    Filed under:
    Jersey, Company & Commercial, Insolvency & Restructuring, Litigation, White Collar Crime, Mourant, Bankruptcy, Insolvency
    Authors:
    Katie Hooper , Viraj Kotedia
    Location:
    Jersey
    Firm:
    Mourant
    Irish High Court Lifts Corporate Veil: Directors Personally Liable
    2022-12-05

    The Irish High Court (Court) has pierced the corporate veil in Powers -v- Greymountain Management Ltd [In Liquidation] & Ors [2022] IEHC 599, to hold passive resident directors and non-resident shadow directors personally liable for funds lost to investors as a result of fraud.

    The Facts

    Filed under:
    Ireland, Company & Commercial, Insolvency & Restructuring, Litigation, William Fry, Liquidation, Alter ego/piercing the corporate veil, High Court (Ireland)
    Authors:
    Lisa Carty , Deirdre O'Donovan , Alexandra Drummy , Gail Nohilly
    Location:
    Ireland
    Firm:
    William Fry
    How Many Connections are Too Many? Bankruptcy Court Finds Multiple Attenuated Connections Not Enough to Warrant Disqualification of Debtors’ Professional
    2022-12-01

    Introduction

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, United States bankruptcy court
    Authors:
    Kelly DiBlasi , Lauren Tauro
    Location:
    USA
    Firm:
    Weil Gotshal & Manges LLP
    New decision by the Court Of Cassation General Assembly to unify the conflicting judgments
    2022-12-01

    Recent development

    Filed under:
    Turkey, Insolvency & Restructuring, Litigation, Baker McKenzie
    Authors:
    Ismail G. Esin , Yalın Akmenek , Demet Kasarcioglu , Koray Sogut , Nildan Dilaver
    Location:
    Turkey
    Firm:
    Esin Attorney Partnership
    Heiploeg’s impact on Belgian insolvency law
    2022-11-30

    The European Court of Justice’s (“ECJ”) Plessers judgment seemed to cause a serious threat for the applicability of the Belgian reorganisation procedure by transfer under judicial supervision, and the right of the interested buyer of the debtor’s activities to choose which particular employees it would take over (see hereand

    Filed under:
    Belgium, European Union, Employment & Labor, Insolvency & Restructuring, Litigation, ALTIUS, European Court of Justice
    Authors:
    Bart Heynickx , Roel Verheyden
    Location:
    Belgium, European Union
    Firm:
    ALTIUS
    When is an Event of Default no longer "continuing" under the ISDA Master Agreement?
    2022-11-30

    When an Event of Default is "continuing" is not defined or addressed in the ISDA Master Agreement. Until now it does not appear to have been expressly considered in case law either.

    Filed under:
    European Union, United Kingdom, Derivatives, Insolvency & Restructuring, Litigation, Stephenson Harwood LLP, International Swaps and Derivatives Association
    Authors:
    Edward Davis , Rebecca Garrick
    Location:
    European Union, United Kingdom
    Firm:
    Stephenson Harwood LLP
    FTX files for Chapter 11 bankruptcy
    2022-11-30

    On November 11, 2022, FTX, the world’s third-largest cryptocurrency exchange, filed for Chapter 11 bankruptcy protection in the United States. Reports suggest that the exchange might have a shortfall of as much as US$8 billion. The collapse has sent shockwaves through the cryptocurrency market, undermined investor confidence and led to renewed calls for authorities to accelerate the implementation of fit-for-purpose regulations.

    Chapter 11 Bankruptcy

    Filed under:
    USA, Derivatives, Insolvency & Restructuring, Litigation, White Collar Crime, Eversheds Sutherland (US) LLP, Cryptocurrency, Anti-money laundering, US Securities and Exchange Commission, European Commission, Commodity Futures Trading Commission (USA)
    Authors:
    Sarah E. Paul , Mark D. Sherrill
    Location:
    USA
    Firm:
    Eversheds Sutherland (US) LLP
    Liability action by an insolvency practitioner against the statutory auditors: the breach of duty by statutory auditors and the existence of the relevant damage to be proved
    2022-11-30

    On 17 October 2022, the Italian Supreme Court issued its judgment in case no. 30383, ruling on the liability actions brought by an insolvency practitioner against the statutory auditors. In particular, the Supreme Court ruled that an insolvency practitioner bringing a liability action against the statutory auditors must provide evidence of the existence of the damage, the relevant amount and the causal link existing between such damage and the unlawful conduct of the auditing body of the bankrupt company.

    Filed under:
    Italy, Insolvency & Restructuring, Litigation, Orsingher Ortu Avvocati Associati
    Location:
    Italy
    Firm:
    Orsingher Ortu Avvocati Associati
    Yargıtay İçtihadı Birleştirme Büyük Genel Kurulu’ndan Yeni Karar
    2022-12-01

    Yeni Gelişme

    Yargıtay İçtihadı Birleştirme Büyük Genel Kurulu’nun 3 Haziran 2022 tarih ve 2021/1 E., 2022/3 K. sayılı Kararı (“İçtihadı Birleştirme Kararı“), 26 Kasım 2022’de Resmi Gazete’de yayımlandı. İçtihadı Birleştirme Kararı uyarınca, aleyhine icra takibi başlatılan borçlu, takibe vekili aracılığıyla itiraz etse dahi, alacaklının açacağı itirazın iptali davasında dava dilekçesi vekile değil asıla (borçlunun kendisine) tebliğ edilmelidir.

    Gelişme Ne Anlama Geliyor?

    Filed under:
    Turkey, Insolvency & Restructuring, Litigation, Baker McKenzie
    Authors:
    Ismail G. Esin , Yalın Akmenek , Demet Kasarcioglu , Koray Sogut , Nildan Dilaver
    Location:
    Turkey
    Firm:
    Esin Attorney Partnership

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