The Bankruptcy Code enables a trustee to set aside certain transfers made by debtors before bankruptcy. See 11 U.S.C. §§ 544, 547, 548. These avoidance powers are subject to certain limitations, including a safe harbor in section 546(e) exempting certain transfers. Among other things, section 546(e) bars avoidance of a “settlement payment . . . made by or to (or for the benefit of) . . . a financial institution [or] a transfer made by or to (or for the benefit of) a . . . financial institution . . .

The Royal Court of Guernsey has recently considered an application under the Companies (Guernsey) Law 2008 (the Law) for the Court to approve a contract for the sale of the assets of a Guernsey company in compulsory liquidation. The decision provides helpful guidance for liquidators and creditors as to the issues the Court will take into account in deciding whether to grant such approval.

Background

This is the Malta contribution published in a report by the AIJA (International Association of Young Lawyers) Insolvency Commission – November 2020

1. What emergency measures in insolvency or restructuring legislation has Maltaadopted to help businesses cope with the economic crisis caused by the COVID-19pandemic?

In ordinary times, a supplier of goods looks to customer-specific underwriting considerations to weigh the benefit of extending credit to a new or existing customer against the risk that the customer will fail to pay for the goods or services supplied. These are not ordina

In a soft touch provisional liquidation in Hong Kong, a provisional liquidator is appointed to pursue a corporate restructuring. When permitted, a soft touch provisional liquidation cloaks a debtor company with a statutory moratorium on creditor enforcement action, thus shielding the debtor company from proceedings by creditors against it while it explores restructuring options.

In Brief:

Directors have potential liability in cases of bankruptcy.

Directors must be aware of their statutory obligations. For example, directors are obliged to:

1. call for a general meeting if losses exceed half the share capital;
2. keep proper books and records; and
3. avoid wrongful trading.

Background

The current global pandemic has provided and will continue to provide plentiful opportunities for fraud and opportunism. One area which is potentially open to abuse is the protection of companies from the service of statutory demands or the presentation of winding up petitions following the enactment of the Corporate Insolvency and Governance Act 2020 (CIGA). It is important to consider alternative remedies if a debtor seeks to use this to their advantage.

This case is within the Chestnut Portfolio acquired by the Cerberus global private investment group and has been one of its most hard fought cases, involving personal debts and security of over £12m and litigation spanning back to 2016.

Summary

The Spanish Insolvency Law sets out various types of restructuring or insolvency legal frameworks. The first is the “concurso de acreedores” or insolvency proceeding, which is a proceeding that is 

Germany's new restructuring regime is expected to come into force 0n 1 January 2021. At the heart of the new regulation is the introduction of a so-called stabilization and restructuring framework (“SRF”) for companies. In a sea change to the traditional approach, the SRF enables a company to be restructured before insolvency proceedings have to be initiated. It is therefore expected that this new regime will have a major impact on German restructuring practice.

Introduction of a Preventive Restructuring Framework