In an announcement to beneficiaries on 24 March 2024[1], the joint administrative receivers (JARs) of Sigma Finance Corporation (the Company), once thought to be “insolvency proof”
When the COVID-19 Pandemic incepted, and issues arose as to whether affected policyholders could seek Business Income and Civil Authority coverage from the presence or suspected presence of SARS-CoV-2 and consequent orders of Civil Authority, I thought that the easiest question to answer was whether such policyholders had suffered physical loss or damage (“PLOD”) to their property.
The Majority PLOD Rule Prior to COVID-19
An appeals court has issued an insightful decision on the availability of damages when an involuntary bankruptcy petition is filed in bad faith. See Stursberg v. Morrison Sund PLLC, No. 23-1186, 2024 U.S. App. LEXIS 20286 (8th Cir. Aug. 13, 2024).
The decision addresses both the interplay between Bankruptcy Code sections 303 and 305 and federal preemption of state law.
What you need to know
. . . In such circumstances, sealing the indictment “would undermine the purpose of having a statute of limitations at all.”
Introduction
On 9 July 2024, the Federal Court in Abdul Rashid Mohamad Isa v PTT International Trading Pte Ltd [2024] 5 MLRA 603 (“Abdul Rashid”), with a panel comprising Nallini Pathmanathan FCJ, Hasnah Mohammed Hashim FCJ and Abdul Karim Abdul Jalil FCJ, held inter alia that a Creditor’s Petition could be withdrawn without the consequences of bringing the entire bankruptcy proceedings to an end. Hurry Up
In an opinion issued on August 16, 2024 (In re Robertshaw US Holding Corp., Bankr. S.D. Tex., Case No. 24-90052, Docket No.
The decision confirms that an arbitration agreement will be upheld in the face of insolvency proceedings only if it can be shown that the petition debt is genuinely disputed on substantial grounds.
Under federal law, a debtor may be criminally prosecuted for various kinds of misconduct in connection with a bankruptcy case, including concealing assets, falsifying information, embezzlement, or bribery. See 18 U.S.C. §§ 152, 157. The U.S. Trustee, which serves as a watchdog over the bankruptcy process, will refer such cases to the U.S. Attorney’s Office for investigation and prosecution.
The £150 million judgment makes clear the full impact of the trading misfeasance offence for directors.