In recent years, market participants have watched with interest from across the Atlantic as U.S. out-of-court liability management and restructuring transactions moved material assets out of the creditors' collateral pools, to enhance liquidity, to raise additional debt or to extend the maturity of existing debt. Many have wondered when these sort of transactions will reach European shores.
That moment has now arrived.
INTRODUCTION
Last month, the German Federal Ministry of Justice published draft legislation that could fundamentally change the restructuring landscape in Germany.
An essential part of the law is the introduction of a corporate stabilisation and restructuring regime, which establishes a comprehensive legal framework for non-consensual out-of-court restructurings in Germany on the basis of the EU's 2019 restructuring directive.
In the wake of the Supreme Court's ruling that an insolvent company can adjudicate, the TCC have confirmed that there remain high hurdles to the insolvent party enforcing any adjudication decision.
THE CHALLENGE:
After years of selling services at a loss to grow its customer base, Agera Energy—a retail electricity and natural gas provider for commercial, industrial and residential customers in 16 states—realized its business was no longer viable. The company decided to file for chapter 11 bankruptcy protection after evaluating strategic alternatives.
A number of recent extensions and changes to temporary measures have been announced that impact insolvency practice and procedure, what are they?
In what appears to be more good news for those with student loan debt, the Tenth Circuit recently joined the Fifth Circuit by holding that certain private student loans are dischargeable in bankruptcy.
In McDaniel v. Navient Solutions, LLC, No. 18-1445 (10th Cir. Aug. 31, 2020), the Tenth Circuit held that an educational loan does not constitute “an obligation to repay funds received as an educational benefit” under Section 523(a)(8)(A)(ii) of the Bankruptcy Code.
Section 523(a)(8) of the Code provides, in pertinent part:
The current Dutch Bankruptcy Code dates back to 1893 when it was first enacted, has aged nicely and still functions well despite the now existing international financial markets and complex financial instruments that could not have been imagined 127 years ago. Although many changes were made since its inception, the Dutch Bankruptcy Code has never had a major overhaul, even though many initiatives were launched over the years.
On Tuesday 6 October 2020 the Dutch Senate adopted the long-awaited legislative proposal for the Act providing for court confirmation of a private restructuring plan (Wet homologatie onderhands akkoord (“WHOA”)). The act introducing the 'Dutch scheme' will enter into force in the beginning of next year at the latest.
Notice to stakeholders: Withdrawal of the United Kingdom and EU rules in the field of civil justice and private international law.
On 27 August 2020, the European Commission published a ‘Notice to Stakeholders’ setting out how EU laws in the areas of civil justice and private international law will apply when the Brexit transition period ends on the 31 December 2020.
This Notice replaces an earlier notice published in January 2019 and a document with questions and answers published in April 2019.
The Corporate Insolvency and Governance Act (CIGA) came into force on 26 June 2020 and introduced a number of temporary and permanent reforms, with the aim of supporting businesses and the economy during the pandemic.