The right to set-off claims and obligations in insolvency proceedings is an important tool for creditors in order to protect themselves against the insolvency risk of a contractual counterparty. This article gives a short overview of the rules for set-off in insolvency proceedings in Austria and certain CEE jurisdictions not taking into account special provisions for close-out netting and similar transactions.

Austria

Set-off in insolvency proceedings

Introduction

As of 1 January 2015, the Au;trian criminal procedure code ("StPO") ctifferentiates between      suspects     (Verdachtiger)      and

subJect    to    loose    and    unsubstantiated

Since 2000 public notices of documents and decisions in insolvency proceedings must be published in the Internet Insolvency Gazette (the Gazette) and are no longer made available on the court notice board. The Gazette plays a central role in insolvency proceedings in Austria.

Content

The Gazette contains details of insolvency edicts, court decisions on closing and reopening of proceedings for companies as well as on the distribution of available assets. The Gazette is updated Monday to Friday between 23:00 and midnight.

Sophia Rolle-Kapousouzoglou, Lennox Paton

This is an extract from the 2020 edition of the Americas Restructuring Review, published by Global Restructuring Review. The whole publication is available here.

In summary

Introduction

On October 20 2010 insolvency proceedings were opened against A-TEC Industries AG, the Austrian holding company of industrial group A-TEC. With outstanding debt of around €650 million (including contingent claims), this insolvency is set to be the third-largest insolvency in Austria to date. Claims included around €300 million of bond debt (two convertible bonds and a corporate bond) issued by the company.

In ZCM Asset Holding Company (Bermuda) Ltd v AWH Fund In Liquidation JCPC, the Privy Council determined that, notwithstanding the absence of express statutory provisions permitting service out of the jurisdiction of fraudulent preference claims, such claims are to have extraterritorial effect.(1)

Facts

In line with Bahrain’s Economic Vision 2030, the Kingdom of Bahrain recently introduced Law No. (22) of 2018 promulgating the Restructuring and Insolvency Law (‘New Law’), as a step towards strengthening the legal framework and business ecosystem in Bahrain. The New Law is expected to boost transparency and efficiency in the insolvency process and improve the ease of doing business in Bahrain.

Published on 30 May 2018, and coming into force on 30 November 2018, the New Law repeals the old Bankruptcy and Composition Law (Law No. (11) of 1987).

An important decision was issued last week by the Bankruptcy Court for the District of Delaware in favor of Squire Patton Boggs’ client CCA Bahamas, Inc. (“CCA Bahamas”). The decision provides guidance on when U.S. bankruptcy courts should dismiss cases filed by foreign debtors. See In re Northshore Mainland Services, Inc., et al., Case No. 15-11402 (KJC).

The Supreme Court of the Bahamas recently dismissed an application seeking various orders in aid of bankruptcy proceedings commenced in the District of Delaware, United States, concerning various Bahamian companies placed into Chapter 11.

Facts

On November 20 2015 the Bahamian Supreme Court declined to register a composition with creditors sought by Irish billionaire Sir Anthony O'Reilly. The court took the alternative route of adjudicating him bankrupt instead.

Facts