A creditor has a chance to obtain satisfaction through a fraudulent transfer claim even if the debtor disposed of its assets before the claim arose. The intention to injure future creditors is demonstrated by the foreseeability of insolvency, and thus the debtor’s expectation of becoming insolvent with respect to potential creditors.
In a notable decision interpreting the March 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Bankruptcy Court for the Middle District of Alabama held that Chapter 13 debtors behind on their payments before March 2020 may seek modification of their plan if they suffered from COVID-19 related financial distress.
1) Premise.
Italian Law Decree no. 83 of 27 June 2015, converted with amendments by Italian Law no. 132 of 6 August 2015, introduced an important amendment within the context of transfers or sales carried out while composition with creditors proceedings is pending, by adding art. 163 bis to the Italian Bankruptcy Law (“BL”), titled "Competing Offers". The rationale of such measure, made clear by the legislator itself in the report accompanying the conversion bill, is twofold:
(i) maximize the recovery prospects of the composition creditors;
In brief
Simplified Insolvency Programme (“SIP”)
In Re Ando Credit Limited [2020] HKCFI 2775 (“Re Ando”), the Hong Kong Companies Court recently appointed provisional liquidators over a Hong Kong company, Ando Credit Limited, in novel circumstances with potentially significant consequences.
On remand from the Fifth Circuit, in its October 26, 2020, decision in In re Ultra Petroleum Corp.,1 the US Bankruptcy Court for the Southern District of Texas ruled that (1) make-whole premiums are allowed by the Bankruptcy Code under appropriate circumstances and (2) a solvent debtor must pay pos
In the wake of the recent economic downturn caused by the COVID-19 pandemic, there will likely be a sharp rise in bankruptcy filings by businesses seeking to obtain relief from the burdens of excessive debt.1 1 Winston & Strawn’s Tax Controversy and Litigation Group litigates tax disputes in the bankruptcy courts and works in conjunction with the firm’s Bankruptcy Practice Group. Portions of this article were originally published by the author in 2008.
This week’s TGIF examines a recent Federal Court decision which considered an application to discharge summonses issued pursuant to sections 596A and 596B of the Corporations Act 2001 (Cth).
Key takeaways
The Court of Appeal has handed down judgment on two appeals to decide whether the appellants had standing to challenge the conduct of a trustee in bankruptcy (“the Bankruptcy Appeal”) and joint liquidators (“the Liquidation Appeal”) respectively (Brake and others v Lowes and others [2020] EWCA Civ 1491). In this article, Tim Symes, a partner in our Insolvency and Commercial Litigation teams, examines the Court of Appeal’s decision.
Speed read: The wrongful trading suspension ended on 30 September 2020 and it is important that company directors keep in mind the offence in section 214 of the Insolvency Act 1986. Although it is a civil contravention, there could be implications for the anti-money laundering regime.