One gauge of the level of business distress is the number of bankruptcy applications filed, which have risen sharply in 2021. Often seen as a last resort, this indicates that despite the continued support of the government and financial institutions, many businesses see filing bankruptcy as the best option for their businesses to survive. According to the Central Bankruptcy Court (Bankruptcy Court), 9,171 bankruptcy proceedings were filed in 2020 for a total value of THB 836.803 billion (compared to 5,415 cases in 2018 and 8,398 in 2019).
The Cayman Islands Government has published the Companies (Amendment) Bill, 2021 (Bill) which will introduce welcome amendments to the Companies Act (2021 Revision) (Act), to facilitate the efficient restructuring of distressed companies for the benefit of their stakeholders.
Ruby Apartments held the management rights to 242 serviced apartments in Ruby One Tower, Surfers Paradise, when Receivers were appointed on 1 August 2019.The Receivers were appointed by a secured creditor one day after Ruby Apartments had appointed an administrator. Ruby Apartments was part of the Ralan Group.
The Receivers carried on the business of apartment manager until 30 September 2019, when they sold the business as a going concern to a third party purchaser.
In a chapter 13 case, which typically lasts from 3 to 5 years while a debtor makes payments according to a plan, the value of the debtor’s property can fluctuate. In a time like the present, when home prices are rising, sometimes dramatically, that could mean an increase in the value of a debtor’s home during the life of the chapter 13 which changes the financial dynamics in the case.
Section 363 of the Bankruptcy Code includes an important protection for lenders confronting a sale of their collateral in a borrower’s bankruptcy proceeding – the right to “credit bid" the outstanding amount of their loan. This right also affords opportunistic investors a powerful tool for use in acquiring the assets of a distressed target. For the traditional lender, the right to bid its debt in a sale of its collateral is a backstop that preserves value if no better options present themselves for recovery.
In Mexico, the trustee holds the property of the trust as the legal owner, but only legally authorized entities may act as trustees, for example, banks (credit institutions) and other financial institutions. Deed in trust is one of the first choices of lenders when it comes to secured transactions, even in bankruptcies, but that may no longer be the case.
In many chapter 11 cases, creditors’ committees can play a vital role in maximizing the recoveries of unsecured creditors. But the powers of creditors’ committees are circumscribed by both the Bankruptcy Code and case law.
Introduction
In the recent case of Chau Cheok Wa v CT Environmental Group Ltd [2021] HKCFI 2602, the Court of First Instance (“Court”) reiterated that for appointment of provisional liquidators pending determination of a winding-up petition, an applicant must establish that there is a good prima facie case for winding-up order at the hearing of the petition and it is right that a provisional liquidator should be appointed in light of the circumstances of the case.
Background
Highlights