The Supreme Court of Canada (“SCC”) in Canada v. Canada North Group Inc., 2021 SCC 30 [Canada North] recently held that courts in proceedings under the Companies’ Creditors Arrangement Act (the “CCAA”) have the authority to rank super-priority charges ahead of the Crown’s deemed trust claim for unremitted source deductions.

The sale of portfolios of non-performing loans (NPLs) in Bulgaria is once again a hot topic. Lenders expect the percentage of work-out exposures to increase as the government's various stimulus packages come to an end. However, following a multitude of successful portfolio NPL sales in the years prior to COVID-19, more and more international investors are expressing interest in the local market.

What does this mean for NPL portfolio sales in Bulgaria?

There are several factors that will play a major role in the future of NPL portfolio sales in Bulgaria:

2021年5月11日，最高人民法院發佈了《關於開展認可和協助香港特別行政區破產程式試點工作的意見》（以下簡稱《試點意見》）。

《試點意見》指定上海市、福建省廈門市、廣東省深圳市人民法院開展認可和協助香港破產程式的試點工作。

《試點意見》規定了認可和協助的程式範圍。根據《試點意見》第二條規定，香港破產程式是指依據香港特別行政區《公司（清盤及雜項條文）條例》《公司條例》進行的集體清償程式，也就是該破產程式針對的是公司而不包括個人，破產程式的性質是“集體清償程式”。

《試點意見》明確了申請主體和受理法院。《試點意見》第五條規定認可和協助香港破產程式的申請主體為香港管理人。依據《試點意見》審理的跨境破產協助案件，由試點地區的中級人民法院管轄。向兩個以上有管轄權的人民法院提出申請的，由最先立案的人民法院管轄。

On April 28, 2021, the Supreme People’s Court publicly released model bankruptcy cases as part of the resolute implementation of the Party Central Committee policy deployments, the role of judicial trials, practical and effective measures to promote fair and efficient bankruptcy trials, facilitating relief to and liquidation of market entities, providing service in high-quality economic development, and in the establishment of a market-oriented, rule-of-law and international business environment.

On August 1, 2021, Alpha Latam Management, LLC, a Miami-based financial services company that historically provides consumer loans in Latin America, along with certain affiliates, filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case 21-11109).  The company reports $100 million to $500 million in estimated assets and $500 million to $1 billion in estimated liabilities.  As described further in the 

A recent England and Wales High Court decision demonstrates the increasingly litigious nature of Court-supervised restructuring processes. It also addresses the Court’s approach to whether foreign recognition risks represent a ‘blot’ on a proposed scheme of arrangement so that the Court should decline sanction ('the recognition/blot question').

In a recent judgment, the English court refused to sanction a restructuring plan put forward by oil and gas producer, Hurricane Energy PLC.

Background

In brief

The Bankruptcy Protector

Almost two years ago, the Small Business Reorganization Act of 2019 (SBRA) was enacted. While the provisions regarding the new Subchapter V reorganization received the most press (streamlined chapter 11 for businesses with debts of no more than $7,500,000), the SBRA also included other important changes to the Bankruptcy Code. Among these additional changes was an increase in the venue threshold under 28 U.S.C. § 1409(b) to $25,000.00 as follows:

“Since the court resumed hearings in May [2020] more than half the petitions I have heard have involved listed companies. Remarkably petitions to wind-up Hong Kong incorporated companies operating domestic businesses are currently a minority. In addition I have received weekly applications for recognition and assistance by soft-touch provisional liquidators of companies incorporated in one of the offshore jurisdictions and listed here intending to use the Z-Obee technique …”