The Supreme Court has on 11 April 2022 dismissed a Special Leave Petition against the decision of the High Court of Tripura at Agarthala, wherein the High Court had held that the distinction of decree holders as creditors from ‘financial creditors’ and ‘operational creditors’, is intelligible and takes forward the purpose of the Insolvency and Bankruptcy Code, 2016, without being discriminatory or arbitrary.
What role might dispute funding play in a complex cross-border dispute involving multiple jurisdictions in Latin America?
Ristorante Ltd t/a Bar Massimo v Zurich Insurance Plc [2021] EWHC 2538 (Ch)
This case is an example of where an insurer alleged that the insured had not complied with the duty of fair presentation introduced by the Insurance Act 2015 and used the insured’s failure to disclose the past involvement of its directors in insolvent companies as a reason to refuse to pay out following a fire. However, the insurer was not successful because of the way in which the question that gave rise to the alleged non-disclosure was worded.
Background
Question: What gets an attorney’s fee application allowed—or rejected—in bankruptcy?
Short answer: The services, (i) must be “necessary,” and (ii) must require legal expertise.
Two Recent Opinions
Two recent opinions address this question:
The Court of Appeal has confirmed that although insolvent parties may refer disputes to adjudication, they will have difficulty enforcing adjudication decisions in all but exceptional circumstances
第１ はじめに
民事再生手続は、これまでの債務の支払を一旦停止した 上で、債務の圧縮（債務の一部の免責）を含む新たな支払計 画（再生計画）を立て、これについて債権者の賛同を得た上 でその計画に従った弁済をすることで、債務超過等の状況に ある債務者が事業の再生を図る手続です。再生債務者にお いて実現可能な内容であり、かつ再生債権者にとっても納得 のいく内容の再生計画を立てることが肝であって、そうした再 生計画案について再生債権者により可決されること及び裁判 所の認可決定を得ることが最も重要な課題の一つといえま す。
第２ 再生計画が不認可となる場合
For the first time in England & Wales, a court has ordered the winding-up of a listed plc on the grounds of loss of substratum – the abandonment of the company's original main object and purpose. If Hong Kong follows this decision, it would be very welcome to minority shareholders who would have an additional option to retrieve their investment monies from companies that embark on a completely different path to that for which they initially signed up.
Jasmine Buildmart Pvt. Ltd. i.e., the corporate debtor (Jasmine) introduced a Gurgaon based housing project i.e., Krrish Provence Estate. The homebuyers of Krrish Provence Estate made an application for initiation of corporate insolvency resolution process (CIRP) against Jasmine before the National Company Law Tribunal (NCLT) as Jasmine could not complete the project even after a period of eight years. Additionally, the homebuyers sought a refund of approximately INR 69 million on the grounds of inordinate delay.
On April 11, 2022, Sungard AS New Holdings, LLC and several affiliates have filed a petition for Chapter 11 relief in the Bankruptcy Court for the Southern District of Texas (Case No. 22-90018). The company reports $500 million to $1 billion in both assets and liabilities.
In this edition of Restructuring Watch, we reflect on the first court decision on the moratorium procedure, some recent schemes and restructuring plans, the lifting of the remaining pandemic-related restrictions for commercial landlords alongside the introduction of the Commercial Rent (Coronavirus) Act 2022 and an extension of the UK directors’ disqualification regime.
Corbin & King: First Judicial Consideration of the CIGA moratorium