On December 6, 2021, Strike, LLC of Woodlands, TX filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of Texas (Case No. 21-90054) along with several affiliates.

The Australian Sawmilling Company Pty Ltd (in liq) v Environment Protection Authority [2021] VSCA 294

Background

When Covid hit in March 2020 and the country went into lockdown with an associated dip in economic activity and consumer confidence, the viability of many small and medium sized enterprises was called into question. Many directors will have had cause to consider their obligation to place their company into an insolvency proceeding in order to insulate themselves from personal liability, and in particular liability for wrongful trading (continuing to trade when they knew or ought to have known there was no reasonable prospect of the company surviving).

Periodically courts remind corporate directors that their decisions to act or to refrain from acting during the course of managing the affairs of a corporation are not without limitations. It is well established that corporate directors owe fiduciary duties, and more specifically, a duty of care and a duty of loyalty to corporate shareholders. Those duties should always be at the front of mind of every director when any action or inaction is contemplated, but in particular, when addressing challenging issues facing the corporation.

On 2 December 2021, the Court of Appeal handed down its judgment in Windhorst v Levy [2021] EWCA Civ 1802, which concerned a challenge against the registration of a German judgment and an application for a stay of execution. Notwithstanding Brexit, the decision is relevant to cases involving (i) judgments in proceedings instituted before 31 December 2020 and (ii) insolvency proceedings opened before 31 December 2020.

Peter Ferrer, Harneys

This is an extract from the 2022 edition of GRR's the Americas Restructuring Review. The whole publication is available here.

In summary

This week’s TGIF considers the recent Federal Court decision in Alfonso, in the matter of Pinnacle Fire Protection Pty Ltd (in liq) v Woods [2021] FCA 1402, where liquidators sought Court approval to enter a long-term settlement agreement.

Key Takeaways

Fabio Guzmán-Saladín and Pamela Benzán Arbaje, Guzmán Ariza

This is an extract from the 2022 edition of GRR's the Americas Restructuring Review. The whole publication is available here.

In summary

Richard J Cooper, Lisa M Schweitzer, Jessica Metzger and Richard C Minott, Cleary Gottlieb Steen & Hamilton

This is an extract from the 2022 edition of GRR's the Americas Restructuring Review. The whole publication is available here.

In summary

I recently had the pleasure of working with my colleagues Benny Roshan and Jillian Berk on an appeal before the Ninth Circuit Bankruptcy Appellate Panel (B.A.P), which tested the ever-evolving intersection between bankruptcy law and probate law.