Question: What happens when a Chapter 7 debtor:

• fails to disclose the existence of claims against third parties;
• receives a Chapter 7 discharge and a closing of the Chapter 7 case;
• then, pursues the undisclosed claims by filing a lawsuit against the third parties; and
• the defendants in that lawsuit move to dismiss debtor’s claim for non-disclosure in the Chapter 7 bankruptcy?

That actually happened—and a U.S. District Court refused to dismiss the debtor’s lawsuit on summary judgment:

Dispute Resolution analysis: In a judgment which brings to a conclusion the trial of the former BHS directors, the Court has held the directors joint and severally liable for the increase in net deficiency of the company arising out of breaches of duty which caused the company to continue trading.

Wright and others v Chappell and others; Re BHS Group Limited [2024] EWHC 2166 (Ch)

What are the practical implications of this case?

1. Montague Goldsmith AG v Goswick Holdings Limited and Ors [2024] JRC 170

What happened?

India’s Insolvency and Bankruptcy Code, 2016 (code), has revolutionised the country’s approach to insolvency, establishing a structured framework for resolving distressed assets while incorporating elements of inclusivity and accessibility. This legislation has become fundamental for businesses and financial institutions, especially as India further integrates into the global economy. The code’s protection of foreign creditors is particularly significant, as it ensures that foreign investors can confidently engage with the Indian economy without hindrance or undue trepidation.

Our latest briefing compares recent developments in the APAC restructuring market with those in the UK. Despite APAC's and the UK's divergent monetary policy and growth forecasts, we find that restructuring markets in both regions are seeing very similar themes:

Introduction:

In an insolvency case involving both UK trustees and Russian Bank Creditors, the High Court issued guidance in regards to the potential breach of the 2019 Regulations surrounding sanctioned entities. The significant criminal and civil penalties potentially arising from this case make it a consequential and relevant case for UK arbitration and litigation lawyers to consider and understand. The final ruling deals with three key questions, as outlined in the court proceedings and expanded upon below.

Case Summary:

I’m serving on a Drafting Committee of the Uniform Law Commission for a uniform law on assignment for benefit of creditors (“ABC”). A draft of such a uniform law is coming together, with lots of input from many people and organizations. And we are always looking for more input!

Following the judgment of the High Court in June 2024 finding two former directors of BHS liable for (amongst other things) wrongful trading and breaches of their directors' duties to creditors in the prelude to the insolvency of the BHS group^[1], Mr.

In a case of first impression in the Ninth Circuit, the US Court of Appeals recently handed bankruptcy trustees a significant power by ruling in TheLovering Tubbs Trust v. Hoffman (In re O’Gorman) that a trustee can avoid intentionally fraudulent transfers under the Federal Bankruptcy Code, even if no creditor suffered harm as a result.

The perspective of a landlord

In brief

A tenant's insolvency hits landlords particularly hard. Existing rental securities (e.g., rent deposit, landlord's lien) cannot always cushion the loss of rent and operating costs. Especially in times of the current energy crisis and rising costs, this issue is becoming increasingly explosive. This is demonstrated by the numerous insolvencies in the fashion retail sector, such as Galeria, Peek & Cloppenburg, KaDeWe and Esprit. High rents are often of the main reasons for insolvency.