Introduction
The first stage in any restructuring by way of a scheme of arrangement in the Cayman Islands involves meetings of such classes of creditors or shareholders (as the case may be) to consider, and if thought fit, approve the terms of the scheme. An application to Court is required for orders to be granted for convening such meetings. If, at these meetings, the requisite statutory majorities are satisfied, the second stage involves obtaining Court sanction for the proposed scheme to become effective.
2023 Restructuring & Insolvency Year in Review Year starts with fears of banking collapse contagion State-backed rescue deal for Credit Suisse announced 10 March 19 March Silicon Valley Bank, centred in California and focussed on funding venture capital and startups, was shut down by its local regulator on 10 March 2023 with the Federal Deposit Insurance Corporation appointed as receiver and the UK bank was sold to HSBC over the course of a weekend. Crypto-exposed Silvergate Bank and Signature Bank both followed suit – all within the span of five days.
December, 2023 For Private Circulation - Educational & Informational Purpose Only A BRIEFING ON LEGAL MATTERS OF CURRENT INTEREST KEY HIGHLIGHTS ⁎ Supreme Court: Rents receivable can be assigned by a debtor to a creditor as actionable claim. ⁎ Supreme Court: The constitutional validity of provisions of IBC pertaining to the personal guarantors upheld. ⁎ NCLAT: An operational creditor who is a participant in meetings of the CoC has no right to seek a copy of the information memorandum.
Article 319(1) of the UAE Civil Procedure Law authorises an execution judge to imprison a debtor who fails to satisfy a judgment debt, unless the debtor is able to prove that he is insolvent.
Introduction
The Supreme Court’s judgment in BTI 2014 LLC v Sequana SA and ors[1] (“Sequana”) is a key decision on the law surrounding directors’ duties.
The High Court was required to consider the Supreme Court’s Sequana judgment in Hunt v Singh (below).
What did we learn from Sequana?
The Government has made a further extension until 31 December 2024 of one of the significant interim measures brought in by the Companies (Miscellaneous Provisions) (Covid-19) Act 2020Opens in new window (the "Covid Act") that permitted companies and co-operatives to hold annual, general and creditor meetings virtually.
I’m reading a U.S. circuit court’s recent bankruptcy opinion that cites Stern v. Marshall, 564 U.S. 462 (2011). I’m startled by that and blurt out (to myself), “Who cites Stern anymore?!” and “Is Stern still a thing?!” and “I thought Stern has been narrowed to nearly nothing?!”
In Lehman Brothers (PTG) Ltd (In Administration), the court considered whether to grant an order extending the administration of Lehman Brothers (PTG) Ltd (the “Company”) for a further two years and in doing so, provided some useful observations about when a court will grant an extension where a company is in distribution mode.
In a recent case, the Victorian Supreme Court said that an accountant ‘would know well that a statutory demand involves strict time frames for response and potentially very significant consequences for a company’. The accountant failed to take appropriate steps to inform the company of the statutory demand.
The statutory demand process
If a company does not comply with a statutory demand within 21 days of service, it is deemed to be insolvent and the creditor may proceed to wind up the company.