This newsletter refers to Restructuring, Insolvency and Bankruptcy news of November 2014.

H.A.M.A.C: adoption de la première sauvegarde accélérée

Le 19 septembre 2014, le tribunal de commerce de Nanterre a ouvert la toute première procédure de sauvegarde accélérée au bénéfice de H.A.M.A.C, la société holding du groupe Alma Consulting, auquel appartient le cabinet de conseil Alma Consulting Group.

The administrators of Lehman Brothers International Europe (LBIE) have announced that, following a ruling in the Frankfurt Regional Court, LBIE’s client money claim against Lehman Brothers Bankhaus AG (Bankhaus) is to be included in the insolvency claims of Bankhaus as an ordinary creditor. The judgment should result in a higher payout for LBIE’s client money claimants.(Source: Update on Client Money Held at Lehman Bankhaus)

One of the duties of a trustee is to examine each claim presented by a potential creditor of the
bankrupt and to determine whether such a claim is valid. A trustee is entitled, under
subsection 135(2) of the BIA, to disallow any claim, priority or security that it finds unproven or
invalid. In the event that a creditor’s claim is disallowed by a trustee, that creditor is entitled to appeal that decision to the superior court in the province. A creditor has 30 days after the
receipt of the trustee’s reasons for disallowance to file an appeal, although an extension may be

On March 22, 2010, in a 2-1 decision, the Court of Appeals for the Third Circuit held that a debtor may proceed with an auction sale under a Chapter 11 plan without providing a secured lender the right to credit bid for its collateral.

In Re: Nortel Networks Corp. the Ontario Superior Court of Justice considered an application for court approval of the Bidding Procedures pertaining to the sale of Nortel’s “Layer 4-7” business, as well as approval of a “Stalking Horse” bidding process.

Prior to filing for protection under the CCAA, Nortel decided that the Layer 4-7 business should be sold. Shortly after filing, Nortel agreed to enter into an Asset Purchase Agreement with Radware for the purchase of the Layer 4-7 business (the “Purchase Agreement”).

In Royal Bank of Canada v. Head West Energy Inc., the Court of Appeal considered the priority of two security interest registrations against the same collateral, namely industrial camp trailers, and the obligations, pursuant to the Personal Property Security Act, R.S.A. 2000, c. P-7 (“PPSA”) of a security holder to amend its registration to reflect a name change when the security holder has knowledge of that name change.

In Royal Bank v. 2021847 Ontario Ltd. et al. (2007), Carswell Ont. 8283, the plaintiff Royal Bank sought summary judgment against the guarantors of a credit facility it granted to 2021847 Ontario Ltd. (“2021847”). The amount the plaintiff sought against the guarantors was the deficiency remaining after the plaintiff had appointed a receiver over the assets of the debtor company. The proceeds from the realization of the receivership were insufficient to payout 2021847’s credit facility.

In good news for liquidators, the Federal Court’s decision in Marsden (liquidator) v CVS Lane PV Pty Limited Re: Pentridge Village (in which Dentons acted for the liquidator) confirms that time will be extended for liquidators who are unable to bring voidable transaction proceedings within the relevant timeframe due to a lack of funding.

The case also has wider implications. It could be relied upon by liquidators to justify subsequent claims which could otherwise have been brought at an earlier stage if funding had been available.

Summary

Schroder Exempt Property Unit Trust and another v. Birmingham City Council [2014] EWHC 2207

Summary

A landlord is liable for business rates where a tenant's lease is disclaimed, even if the landlord does not take possession of the property following a disclaimer.

Background