A recent decision of New York’s highest court potentially strengthens the ability of lenders to bring suits against third parties for participation in a borrower’s breach of single purpose entity/bankruptcy remote loan document covenants.

In the third (and final) of our blog series on recent CVA cases, in Rhino Enterprises Properties Ltd & Anor [2020] EWHC 2370 (Ch), the High Court gave permission for misfeasance proceedings to be brought against two former joint administrators. This was despite an approved Company Voluntary Arrangement (“CVA”) containing a clause releasing the joint administrators from liability.

Increasing pressures placed on those operating in the retail and hospitality sectors as a result of COVID-19, means there is likely to be an increasing use of CVAs in these sectors. The intention would be to help support and restructure businesses in distress, but could retailers use a CVA as a mechanism to re-write the terms of its leases?

Part 1: termination rights

The Corporate Insolvency and Governance Act 2020 (CIGA 2020) introduces important changes to the operation of cross-border insolvency regulations and impacts more broadly on the potential remedies available in the maritime sector to recover debts. In this two-part series, we consider first CIGA 2020, the Cross-Border Insolvency Regulations 2006 (CBIR) and termination rights, and in the second part, we review CIGA 2020, liens and set-off claims.

Der Bundesgerichtshof (BGH) hat sich (Urteil v. 18.11.2020, IV ZR 2017/19) ausführlich zu der Frage geäußert, ob Ansprüche der GmbH gegen Geschäftsführer bestehen. Konkret ging es um den Ersatz von Zahlungen, die nach Eintritt der Insolvenzreife von einer D&O-Versicherung zu ersetzen sind.

Der Fall:

As we approach the end of 2020, there is an important bankruptcy law set to expire early next year. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the Small Business Reorganization Act of 2019 (SBRA) provide useful options for small business debtors (i.e. those whose debts are less than $7.5 million) considering Chapter 11 bankruptcy protection. To reap the benefits of these Acts, small business debtors may need to act quickly, as some of the key benefits of the CARES Act are scheduled to sunset on March 27, 2021.

1In Sutton 58 Associates LLC v.

The COVID-19 pandemic has exacerbated the problems faced by high-street retailers. Store closures during lockdown, changing consumer behaviour and the resultant loss of turnover and profits have caused many businesses to seek to reduce their rent payments. Company Voluntary Arrangements (“CVAs”) have become fashionable tools for trying to secure such rent reductions.

In a new opinion issued in the Chuck E. Cheese bankruptcy cases, In re CEC Entertainment, Inc., Case No. 20-33163 (Bankr. S.D. Tex.),¹ Judge Marvin Isgur of the U.S.

The United Kingdom’s Corporate Insolvency and Governance Act 2020 (CIGA) shifted the focus of the United Kingdom’s insolvency regime from administration and liquidation to rescue and recovery and introduced a number of interesting new features that apply to companies experiencing financial difficulties. This article considers how certain of these features fit into the insolvency regime of the Cape Town Convention.1