One of the most powerful tools for insolvency practitioners when investigating the affairs of an insolvent company where wrongdoing is suspected is section 236 of the Insolvency Act 1986 (“IA 1986”). This confers power on English courts to order certain categories of parties to produce documents and an account of dealings relating to companies being wound up in the UK.

On July 6, 2020, the United States Court of Appeals for the Seventh Circuit (which covers appeals from federal courts in Indiana, Illinois and Wisconsin) handed down the third in a series of decisions related to Chicago debtors seeking chapter 13 bankruptcy protection in order to avoid or defer paying parking and other vehicle fines. The key take away from the decision is that a bankruptcy court may confirm a chapter 13 repayment plan that holds property in the estate, but must make a finding of good, case-specific reasons for doing so.

The Main Street Lending Program is designed to help companies that were in sound financial condition prior to the COVID-19 pandemic to maintain their operations and payroll until conditions normalize. This White Paper gives a broad understanding of the program’s terms and implications by delving into the key questions that market participants are likely to have about the program and addressing the latest changes implemented in the final legal forms and agreements. 

EDITORIAL by John Kimbell QC

Welcome to the first edition of Aviation News!

These are challenging and uncertain times for the aviation world. Covid-19 has temporarily grounded large numbers of commercial aircraft and rumours of airline insolvency abound as pictures of empty airports regularly appear in the press. Against this background, Thomas Macey-Dare QC considers the impact of airline insolvency on slot allocation and Mark Stiggelbout and Emily McWilliams discuss the potential impact of force majeure and frustration arguments based on the pandemic.

In what is likely to be one of this year’s landmark insolvency decisions, the Supreme Court in Bresco v Lonsdale has considered the interaction between insolvency set-off and adjudication, though the judgment is likely to have application to other dispute resolution processes including litigation and arbitration. The Supreme Court, unlike the High Court and Court of Appeal, permitted the adjudication to continue and, in doing so, dismissed the suggestion that insolvency set-off always results in the extinction of cross-claims to be replaced by a single claim for the balance.

OVERVIEW

Introduction

On 26 June 2020 the UK Corporate Insolvency and Governance Act 2020 (“CIGA”) entered into force. It represents a radical change in English insolvency law in that (among other things):

1 前言

很多读者在听到“公司清算”的时候，都会联想到破产程序及特殊清算程序吧。实际上，日本 《公司法》设想的公司清算之原则形式为一般清算程序（《公司法》第475条），破产程序及特殊清 算程序则为因资不抵债等原因导致一般清算程序无法进行时的特殊规定。因此，了解原则形式的一 般清算程序，亦有助于理解破产程序、特殊清算程序及其他法定及自行再生程序。由此，本文将针 对一般清算程序的概要进行介绍。

2 一般清算程序的概要 

(1)一般清算程序的开始

通常，当清算程序以（《公司法》¹ 第475条各项）的开始原因发生时，一般清算程序开始。代表 性的自由开始一般清算程序的事由包括，公司章程（《公司法》第471条第2项）所载的解散事项发 生，以及股东大会作出决议（《公司法》471条第3项）等。

(2)一般清算程序的对象

即使存在清算程序开始的原因，但当对清算执行构成障碍的事项存在或疑似资不抵债时，有可能 转入特别清算程序² ；而当破产程序开始的原因（资不抵债或无力偿还）被认可时，则有可能转入破 产程序。

In the case of 1842752 Ontario Inc. v. Fortress Wismer 3-2011 Ltd.[1](the "Fortress Case"), the Ontario Court of Appeal held that a judgment creditor is not entitled to enforce a writ of seizure and sale against a registered owner that beneficially holds land in trust for a judgment debtor, nor to priority over arm's length construction financing.

On May 5, 2020, Judge Mary Walrath of the United States Bankruptcy Court for the District of Delaware delivered a bench ruling that denied a minority shareholder’s motion to dismiss the Chapter 11 cases of Pace Industries and certain of its affiliates on the grounds that the shareholder’s contractual right to block a bankruptcy filing under the debtor’s certificate of incorporation was contrary to public policy.

The Corporate Insolvency and Governance Act 2020 (the “Act”) came into force on 26^th June 2020. Alongside the Act, a new Insolvency Practice Direction (“IPD”) came into force and provides additional information in respect of winding petitions and the “coronavirus test”. This blog will look at a few of the key changes contained in the IPD.