In Short

The Situation: In Australia, the Takeovers Panel ("Panel") is the primary forum for hearing disputes in relation to takeover bids and other corporate control transactions involving public companies. In light of the current COVID-19-led financial distress being experienced by many companies, understanding when the Panel will be the appropriate forum to consider disputes in relation to a company in administration is important. This question arose in the course of the current Virgin Australia Group administration.

In brief

Baker McKenzie recently acted for the Foreign Representatives of Thai Airways International Public Company (Thai Airways), in successfully obtaining orders recognising the business organisation proceeding commenced by Thai Airways in Thailand as a foreign main proceeding pursuant to article 17 of the UNCITRAL Model Law on Cross‑Border Insolvency (the Model Law) which is incorporated into Australian law by the Cross‑Border Insolvency Act 2008 (Cth) (the Act).

• In light of the economic downturn caused by the COVID-19 pandemic, bankruptcy and restructuring considerations are a reality for many organizations.
• Debtors reorganizing under Chapter 11 of the U.S. Bankruptcy Code should be aware that environmental obligations may be exempt from the automatic stay and that some environmental obligations will not be dischargeable in bankruptcy.
• This Holland & Knight alert provides an overview of common issues arising at the intersection of bankruptcy and environmental law.

With economic downturn comes bankruptcy.

Cory Bebb looks at a recent unsuccessful attempt by Administrators to block an £18.6M misfeasance claim by contributories.

“All cats are animals, but all animals are not cats” - former administrators’ attempt to stop £18.6M misfeasance claim based upon their CVA release clause, fails in a provisional ruling: Re Rhino Enterprise Properties Limited [2020] EWHC 2370 (Ch)

2020 Tilleke & Gibbins International Ltd.

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CAMBODIA

JURISDICTION: CAMBODIA

Jay Cohen [email protected] With thanks to international intern Cassandra Allen

The Bankruptcy System in Cambodia

The bankruptcy system in Cambodia is governed by the 2007 Insolvency Law, which applies to all businesses (including natural persons operating sole proprietorships).

Financial Restructuring & Insolvency/Finance A New Restructuring Plan

16 SEPTEMBER 2020

IN THIS ISSUE:

Introduction Process for Implementing a Plan Availability of the Plan Disenfranchisement of Creditors or Members Numerosity Cross-class Cram Down Moratorium Veto Pensions Opinion

EIGHTH CIRCUIT BANKRUPTCY MONITOR

In the recent case of Re Shum Tung Lam formerly known as Shum Wan Man [2020] HKCFI 1720, the Court of First Instance was asked to clarify the requirements under section 30A(6) of the Bankruptcy Ordinance (Cap. 6) (BO) which governs objections made by creditors or trustees to the automatic discharge of a bankrupt from bankruptcy.

Background

In Re North Point Global Ltd, the liquidators of a subsidiary submitted a proof in the CVA of the parent company based upon a claim that certain payments made by the parent to the subsidiary were unlawful preferences. Notably, when the parent's CVA came into effect, the liquidators of the subsidiary had not been appointed.

Under section 64 of the German Companies Act (GmbHG), the managing director of a company is obliged to reimburse payments which have been made after the company becomes illiquid or over-indebted but not when the payments are made with the diligence of a prudent businessman. Such permitted payments include those that are necessary for production, internal operation, and the maintenance of the business concern.