Il y a trois ans déjà, l’ordonnance du 12 mars 2014, conçue dans le but de « simplifier » la gestion des procédures collectives, est venue modifier la procédure de déclaration des créances.
Avant cette réforme, les créanciers (hors salariés) devaient adresser leur déclaration de créances au mandataire judiciaire dans un délai de deux mois (quatre mois pour ceux résidant hors de France Métropolitaine) à partir de la publication au BODACC du jugement ouvrant la procédure de sauvegarde, de redressement ou de liquidation judiciaire, sous peine de forclusion.
This Monday, the U.S. Supreme Court rejected General Motors’ petition for a writ of certiorari, which GM filed in an attempt to overturn a ruling by the Second Circuit Court of Appeals related to the sale of substantially all of GM’s assets in bankruptcy. When we last visited the case in a prior blog post, GM’s petition to the Supreme Court was still pending.
A significant amendment to the Czech Insolvency Act will take effect on 1 July 2017. It has been stated that the main aim of the amendment is to introduce measures against so called “insolvency mafia” and regulate consultancy services providers in connection with solving personal debts. The amendment brings changes to rules for personal bankruptcies, which are to be solved through a discharge from debts.
Slide Rules and Hula Hoops – Business Obsolescence and Bankruptcy
According to the European Commission, every year in the EU, 200,000 firms go bankrupt, resulting in over 1.7 million people losing their jobs. Currently, too many viable companies in financial difficulties are steered towards liquidation rather than early restructuring. Also, too few entrepreneurs get a second chance.
When we last discussed the Commonwealth of Puerto Rico’s efforts to restructure some $72 billion in municipal debt, a Federal District Court Judge had found the Commonwealth’s 2014 municipal debt-restructuring law, the “Recovery Act,” to be pre-empted by the federal Bankruptcy Code, unconstitutional and therefore void.
A new fee structure in respect of insolvency fees payable to the Insolvency Service came into force on 21 July 2016, pursuant to The Insolvency Proceedings (Fees) Order 2016 (SI 2016/692) (the “Order”), which revokes The Insolvency Proceedings (Fees) Order 2004 (SI 2004/593) and all ten subsequent amendment orders.
Smile Telecoms Holdings Limited (“Smile”), a Mauritian company, has recently had its second restructuring plan sanctioned by the High Court in England. The case contains some important markers for those involved in restructuring plans, particularly those plans which involve international elements or which seek to prevent out-of-the-money creditors from voting on the plan.
Background
This note provides an overview of the English restructuring plan, giving insight into when a foreign company might be able to restructure in England, an overview of the process and the advantages that a restructuring plan offers over other processes.
It should not be relied on as legal advice. Should you require legal advice in relation to your specific circumstances, please contact one of our team members whose contact details are at the end of this note.
What Is a Restructuring Plan ?
Last year the Corporate Insolvency and Governance Act (the Act) made both temporary and permanent changes to the UK insolvency laws.
As part of these measures, a provision was inserted into existing legislation which curtails the ability of suppliers to terminate supply contracts when a customer becomes insolvent (the so called `ipso facto regime').