U.K. Turnaround and Restructuring update June 2025 Since our February update, we have seen geopolitical developments and rapidly evolving trade policies come to the fore, creating a level of uncertainty that is likely to persist for the remainder of the year and define companies’ strategic activities as a result.

Introduction

The Insolvency and Bankruptcy Board of India (‘IBBI’) has recently come up with a proposal for the parties involved in an operational creditor application to explore mediation under the provisions of the Mediation Act, 2023. This is aimed as a precursor to the filing of an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (‘Code’).

On 4 February 2025, the latest Draft of the Amended Law on Bankruptcy (“Draft”) was published by the People’s Supreme Court (“SPC”) for public comments. The Draft is prepared to supersede the current Law on Law on Bankruptcy No. 51/2014/QH13 dated 19 June 2014 (“Bankruptcy Law 2014”) and introduces several significant changes that may impact the bankruptcy procedures based on the implementation of the Bankruptcy Law 2014 from its effective date until now.

Introduction

Insolvency and arbitration traditionally do not mix well, as they embody somewhat contrasting legal policies. The Singapore Court of Appeal highlighted in Larsen Oil and Gas Pte Ltd v Petroprod Ltd (in official liquidation in the Cayman Islands and in compulsory liquidation in Singapore) [2011] 3 SLR 414 that:

Overview

We asked our team for their predictions of what they think 2025 might bring in the Property Disputes sector.

Insolvencies and Restructuring

With the rising popularity of alternative dispute resolution globally (including in insolvency related cases), it is important to take stock of where the Cayman Islands currently stands (as a leading jurisdiction in cross-border insolvency and restructuring) on the use of mediation in this context.

The decision handed down in Re A Company [2024] EWHC 2656 (Ch) has provided new insight on what constitutes "genuine and serious" cross-claim for the purposes of securing an injunction to restrain presentation of a winding up petition.

Background

On June 27, 2024, the U.S. Supreme Court released its 5-4 opinion in connection with the bankruptcy case of Purdue Pharma L.P. (“Purdue”). Over a vigorous dissent authored by Justice Kavanaugh, a narrow majority of the Supreme Court held that the Bankruptcy Code does not permit chapter 11 plans of reorganization to provide for non-consensual releases of non-debtors outside of the asbestos context.

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