A recent judgment rendered by the Superior Court in the judicial district of Montréal1 is in line with the current trend in rulings regarding the appointment of receivers under the Bankruptcy and Insolvency Act (“B.I.A.”), namely the requirement that the notice of exercise of a hypothecary right referred to in the Civil Code of Quebec (“C.C.Q.”) be submitted, and the time limit specified in the notice must have expired, prior to the application to appoint a receiver.
As businesses experience diminishing revenues, falling stock prices, and other economic hardships resulting from Coronavirus Disease 2019 (COVID-19), some economists project the possibility of an unprecedented number of business bankruptcies. Some of these businesses own brands, and some have entered into relationships, most commonly trademark licenses, under which they allow others to use their brands. What happens to a trademark license when a brand owner becomes insolvent, particularly in the context of a reorganization under Chapter 11?
Even with the economy starting to re-open, many businesses are still struggling to get back on track in the wake of the COVID-19 pandemic. Chapter 11 bankruptcies are up 26 percent over this time last year, a number that includes businesses in a wide array of industries from large retailers like J. Crew and J.C. Penney to energy companies like Diamond Offshore Drilling and Whiting Petroleum.
In The Toronto-Dominion Bank v Queen (2020 FCA 80), the Federal Court of Appeal (FCA) confirmed a Federal Court (FC) decision and ruled that a secured creditor had a statutory obligation to pay the Canada Revenue Agency (CRA) for a tax debt of an arm’s-length borrower because the secured creditor had received proceeds from the sale of the borrower’s property which was deemed to be held in trust by the Crown under the Excise
In Dhillon v Barclays Bank plc [2020] EWCA Civ 619, Mrs Dhillon sought rectification of the Land Register to remove a charge granted following a fraudulent transfer. The property was now worth over a million-pounds. The sum secured by the charge was over £600,000.
The sprawling and complex cross-border fraud litigation being pursued by the Joint Liquidators (Paul Atkinson and Glyn Mummery of FRP Advisory) of Grosvenor Property Developers Ltd (‘the Company’) has reached a significant milestone. The counsel team (instructed by Alyson Reilly and Séamas Gray of gunnercooke) led by Rory Brown (and including Martin Young, Nora Wannagat, and Andrew Shipley) has been involved in over 25 heavily contested hearings (in the High Court in London and in the CFI, DIFCC, Dubai) in the last 13 months.
Historically, the interests of landlords whose commercial real estate is occupied by debtors in Chapter 11 proceedings have been generally well protected. Indeed, Section 365(d)(3) of the Bankruptcy Code requires the debtor to timely perform all of its post-petition obligations under its nonresidential leases of real property — most important among those, rent.
The restructuring & insolvency Q&A series provides a comprehensive overview of some of the key points of law and practice of the regulatory environment in Luxembourg. Today's chapter focuses on the legal framework.
What domestic legislation governs restructuring and insolvency matters in your jurisdiction?
Trusts are established for many reasons. One of the most common is asset protection.
The recent decision of Boensch v Pascoe [2019] HCA 49 from the High Court gives some insight into how that asset protection could be undone in the event of the bankruptcy of an individual trustee.
Facts
One of the objectives of the Bankruptcy Code is to ensure that each class of creditors is treated equally. And one of the ways that is accomplished is to allow the debtor’s estate to claw back certain pre-petition payments made to creditors. Accordingly, creditors of a debtor who files for bankruptcy are often unpleasantly surprised to learn that they may be forced to relinquish “preferential” payments they received before the bankruptcy filing.