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:
- call for a general meeting if losses exceed half the share capital;
- keep proper books and records; and
- avoid wrongful trading.
Background
In Henry Hobbs Jr. v. Buffets LLC the United States Court of Appeals for the Fifth Circuit upheld the constitutionality of a recent increase in United States Trustees fees that are charged to Chapter 11 debtors.
Teilweise Erleichterung für Geschäftsleiter – Haftungsgefahren für Zahlungen bei Insolvenzreife gegenüber der aktuellen BGH-Rechtsprechung vermindert
La Ley Concursal española prevé distintos tipos de marcos legales de reestructuración o insolvencia. El primero de ellos es el concurso de acreedores, que es un procedimiento sometido a una supervisión
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.