Objective
The new preventive restructuring procedure aims to deal with companies in financial difficulty before serious problems arise. The measures focus on preventing the insolvency of businesses to preserve their viability.
Main characteristics
In a recent judgment on directors’ liability, the Higher Regional Court of Düsseldorf (Oberlandesgericht Düsseldorf) held that startup companies are not deemed to be overindebted if they are receiving adequate finance from their shareholders or third parties.
Background
In May 2021, a landmark co-operation mechanism was implemented between Hong Kong and Mainland China in cross-border insolvency matters.
Liquidators from Hong Kong can now apply to the courts in three Mainland "pilot cities" (ie Shanghai, Shenzhen and Xiamen) for recognition and assistance, provided that:
The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 (the Regulations) came into effect on 4 May 2021. While the Regulations will provide residential tenants with additional procedural protection regarding rent arrears, they will be an unwelcome additional hurdle to landlords.
What do the Regulations do?
Although the UK left the EU on 31 January 2020, the impact of Brexit on cross-border insolvencies was largely postponed until the end of the transition period at 11pm on 31 December 2020.
The UK is now designated as a "third country" from the perspective of the EU, directly applicable EU laws and regulations no longer apply, and the Brexit Trade and Cooperation Agreement does not deal with cross-border insolvencies. As such, insolvency practitioners may now be left feeling that they are effectively in a "no-deal" scenario.
Background
Pensions in Restructuring Survey Report
January 2021
2020 might provide answers to many political and economic issues, but it is not possible to see with perfect vision what the future holds for pensions in restructuring matters.
That was part of the conclusion to the
report on Taylor Wessing's previous
Pensions in Restructuring Survey; with
hindsight, 2020 brought few answers
and posed many questions.
Pensions In Restructuring Survey Report
Welcome to the results of Taylor Wessing's fifth annual Pensions in Restructuring Survey
In Germany, the duty to file for insolvency if there is illiquidity (Zahlungsunfähigkeit) and/or over-indebtedness (Überschuldung) was suspended under certain circumstances due to the COVID-19 pandemic until the end of September 2020.
The German Federal Government has passed a limited extension of the suspension period regarding over-indebtedness. We summarise the new legislation and outline the key takeaway for your business below.
What does the new legislation say?
How do you safeguard your interests if you find yourself dealing with a company that enters an insolvency process or is at risk of insolvency, whether as a contract counterparty or in a dispute? Conversely, if you find prospective contract counterparties raising concerns about your company's solvency, what protections might you be able to offer your counterparty in order to continue the relationship?
Was ist zu beachten?
Die Pandemie trifft die Wirtschaft mit voller Wucht und ein Ende ist weiterhin nicht absehbar. Um eine ungeordnete Insolvenzwelle zu vermeiden, hat der Gesetzgeber schnell reagiert und mit dem am 27. März 2020 in Kraft getretenen COVID-19-Insolvenz-Aussetzungsgesetz (COVInsAG) die Insolvenzantragspflicht zunächst bis zum 30. September 2020 suspendiert. Per Verordnung kann die Suspendierung bis zum 31. März 2021 verlängert werden.
Background
According to German law, managing directors of limited liability companies are personally liable for payments that have been made despite insolvency. This can lead to widespread liability.