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    Dubai's new debt law: how proving financial hardship can prevent imprisonment
    2023-11-04

    In Dubai civil cases, if someone proves they cannot pay what the court ordered, they will normally avoid facing an arrest warrant, the emirate's highest judicial body has said.

    Creditors need to demonstrate that the person who owes the money has sufficient funds to pay the debt before the court can issue an arrest warrant for unpaid dues.

    Filed under:
    United Arab Emirates, Insolvency & Restructuring, Litigation, Hassan Elhais
    Authors:
    Dr. Hassan Elhais
    Location:
    United Arab Emirates
    Firm:
    Hassan Elhais
    Insolvency - Doctrine of election - IBC provisions can be invoked even after issuance of recovery certificates by DRT
    2023-11-06

    The Supreme Court has held that the ‘doctrine of election’, stemming out of the law of evidence that bars prosecution of the same right in two different fora based on the same cause of action, cannot be applied to prevent a financial creditor from approaching the adjudicating authority for initiation of Corporate Insolvency Resolution Process against a corporate debtor.

    Filed under:
    India, Insolvency & Restructuring, Litigation, Lakshmikumaran & Sridharan Attorneys, Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 (India)
    Location:
    India
    Firm:
    Lakshmikumaran & Sridharan Attorneys
    Stock Broker is a Financial Service Provider - The NCLAT ruling may offer respite
    2023-11-06

    While the Insolvency and Bankruptcy Code, 2016 (“IBC”) provides for insolvency resolution and liquidation of ‘corporate persons’, it excludes ‘financial service provider’ (“FSP(s)”) from the said provision.

    Filed under:
    India, Banking, Company & Commercial, Insolvency & Restructuring, Litigation, Cyril Amarchand Mangaldas, Liquidation, Securities and Exchange Board of India, Insolvency and Bankruptcy Code (India), National Company Law Tribunal
    Authors:
    Abhishek Mukherjee , Monil Chheda , Tushar Kumar
    Location:
    India
    Firm:
    Cyril Amarchand Mangaldas
    Pre-Packed Schemes of Arrangement: the Singapore Approach
    2023-11-02

    In 2018, Singapore enacted the Insolvency, Restructuring and Dissolution Act (IRDA 2018), which streamlined its debt restructuring regime by consolidating provisions previously set out in various statutes into a piece of omnibus legislation.

    Among other developments, the IRDA 2018 built upon existing provisions relating to pre-packed schemes of arrangement (i.e. pre-packed schemes) and enhanced pre-packed schemes as a viable tool in Singapore’s arsenal of debt restructuring mechanisms.

    Filed under:
    Singapore, Insolvency & Restructuring, Litigation, CMS Holborn Asia, Insolvency
    Authors:
    Daniel Tan
    Location:
    Singapore
    Firm:
    CMS Holborn Asia
    Supreme Court confirms the Administrator of Sports Direct subsidiary is not an officer within the meaning of TULRCA
    2023-11-02

    The Supreme Court judgment in the case of R (on the application of Palmer) (Appellant) v Northern Derbyshire Magistrates Court and another (Respondents) was handed down on 1 November 2023.

    Filed under:
    United Kingdom, Employment & Labor, Insolvency & Restructuring, Litigation, Kingsley Napley
    Authors:
    Nicholas Hughes , Nick Ralph
    Location:
    United Kingdom
    Firm:
    Kingsley Napley
    Funding Post an Insolvency Event
    2023-11-02

    Is a court order necessary for security interests granted after the appointment of external administrators? Perhaps not.

    Filed under:
    Australia, Banking, Corporate Finance/M&A, Insolvency & Restructuring, Litigation, Litigation Capital Management, Insolvency, Corporations Act 2001 (Australia), Personal Property Securities Act 2009 (Australia)
    Authors:
    Siba Diqer
    Location:
    Australia
    Firm:
    Litigation Capital Management
    Carillion NED “test case” proceedings dropped - a reminder about D&O insurance
    2023-11-02

    The Insolvency Service (IS), acting on behalf of the Secretary of State for Business and Trade, commenced disqualification proceedings against five former non-executive directors (NEDs) of Carillion plc in January 2021, following the compulsory liquidation of the Carillion Group in January 2018. Last month on the eve of trial, the IS discontinued its disqualification proceedings against the NEDs.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Insurance, Litigation, Herbert Smith Freehills LLP, Financial Conduct Authority (UK), Carillion, Insolvency Service (UK)
    Authors:
    Greig Anderson , Hannah Warren
    Location:
    United Kingdom
    Firm:
    Herbert Smith Freehills LLP
    Luxembourg Modernises Its Insolvency Legislation
    2023-11-02

    On 19 July 2023, the parliament of the Grand Duchy of Luxembourg (Luxembourg) passed bill no. 6539A into law (the New Insolvency Law), marking a significant milestone in the movement to modernise and enhance the competitiveness of Luxembourg’s insolvency framework. The bill has been under discussion for a number of years and aims to curtail the use of bankruptcy as an insolvency solution in favour of the preemptive preservation or reorganisation of financially distressed companies.

    Filed under:
    Luxembourg, Insolvency & Restructuring, Litigation, K&L Gates LLP, Insolvency
    Authors:
    Dr. Jan Boeing , Geoffrey Delamarre , Tanner J. Wonnacott
    Location:
    Luxembourg
    Firm:
    K&L Gates LLP
    Are UK Administrators Criminally Liable For Failing to File a HR1?
    2023-11-01

    The answer to that question and with a huge sigh of relief is thankfully not, following the Supreme Court finding that an administrator of a company appointed under the Insolvency Act 1986 (“IA 1986”) is not an “officer” of the company within the meaning of section 194(3) of the Trade Union and Labour Relations (Consolidation) Act 1992 (“TULRCA”).

    Filed under:
    United Kingdom, Employment & Labor, Insolvency & Restructuring, Litigation, Squire Patton Boggs
    Location:
    United Kingdom
    Firm:
    Squire Patton Boggs
    Update! Court Ordered Charges can also prime Crown Claims in BIA matters
    2023-11-01

    Recent teachings of the Supreme Court of Canada court in Canada v Canada North Group Inc., 2021 SCC 30 [Canada North] had confirmed that the Companies’ Creditors Arrangement Act (‘CCAA’) courts could grant super-priority charges (e.g. interim financing, administration charge, or directors’ and officers’ charges) ranking in priority to s.

    Filed under:
    Canada, Insolvency & Restructuring, Litigation, McMillan LLP, Supreme Court of Canada
    Authors:
    Sarah White , Émile Catimel-Marchand , Waël Rostom
    Location:
    Canada
    Firm:
    McMillan LLP

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