Brazilian companies have increasingly chosen arbitration as their preferred method for resolving domestic and international disputes. Now the impact of COVID-19 in Brazil has caused a sharp increase in insolvencies, and there is no expectation of a quick turnaround in the next months and, possibly, years to come. What, then, are the potential effects of Brazilian insolvency proceedings on arbitration in Brazil and abroad?
Are arbitration agreements affected by the opening of insolvency proceedings?
Despite commentators’ recent focus on the new Part 26A restructuring plan, introduced in late June by the Corporate Insolvency and Governance Act 2020, the scheme of arrangement under Part 26 of the Companies Act 2006 (“scheme”) remains a popular tool for companies to reach a compromise or arrangement with their creditors and/or its members.
Ahead of the October budget, the treasurer has announced proposals to overhaul insolvency laws in Australia, to introduce provisions to allow struggling businesses to continue trading whilst a restructuring plan is developed. The changes, which share similarities with US Chapter 11 bankruptcy provisions, are yet to be legislated, but are proposed to commence with transitional provisions from 1 January 2021.
In our latest Bankruptcy Byte, Andrew Ditlevsen explains the how, why and what if concerning proof of claims and claim litigation.
Following yesterday’s announcement that a number of the temporary measures brought in by the Corporate Insolvency and Governance Act (CIGA) to ease pressures on companies most at risk of insolvency during the ongoing Covid-19 crisis are to be extended, we look here at some of the key questions arising under CIGA in the context of the commercial landlord and tenant relationship.
New regulations deriving from the Corporate Insolvency and Governance Act 2020 have extended the effective prohibition on statutory demands and winding up petitions until 31 December 2020. Tim Symes, a partner in our Insolvency and Commercial Litigation teams, looks at the implications of this for debtors and creditors.
On 15 September 2020, the Minister for the Economy, Investment and Small Businesses issued the Companies Act (Suspension of Filing for Dissolution and Winding Up) Regulations, 2020 (the “Regulations”). These Regulations have been anticipated ever since the publication of Bill 128 of 2020 and introduce a number of changes to Malta’s insolvency laws in light of the COVID-19 pandemic. These changes are summarized and commented upon below.
Suspension of Rights to File for Dissolution
Following the recent Supreme Court decision in Bresco Electrical Services Ltd (In Liquidation) v Michael J Lonsdale (Electrical) Ltd, it is clear that companies in liquidation have the right to adjudicate a dispute. However, a successful adjudication is only half the battle: the insolvent company must still persuade the court to enforce the decision.
Empresas brasileiras têm optado por resolver disputas nacionais e internacionais via arbitragem. Mais recentemente, os impactos econômicos do COVID-19 no Brasil têm causado um aumento considerável do número de recuperações judiciais e falências. Sem expectativa de que essa tendência seja revertida dentro dos próximos meses e, possivelmente, anos, é oportuno indagar: quais seriam os efeitos causados pela nova onda de insolvências em arbitragens brasileiras e internacionais? Veja nossos comentários no documento abaixo.
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