From 1 July 2021, directors in the UK could be subject to a wrongful trading claim if their company goes into liquidation or administration.
Wrongful trading
This means that directors may be personally liable to contribute to the company’s assets:
The Hong Kong government will introduce a long-awaited statutory corporate rescue procedure (CRP) in 2021, bringing the regime more in line with international practice in jurisdictions such as the UK and the USA.
The current lack of a CRP in Hong Kong means that there are limited options available to distressed companies and the lack of a moratorium on creditor enforcement jeopardises legitimate restructuring efforts. The Companies (Corporate Rescue) Bill is timely given the difficulties brought by the current economic downturn, itself exacerbated by the impact of COVID-19.
The German Federal Court of Justice was recently asked to decide whether a waiver in favour of company director had been validated by the preliminary insolvency administrator's consent.
Background
Following the introduction of the Dutch Court Approval of a Private Composition (Prevention of Insolvency) Act (the WHOA), the first court approval for a private composition was granted on 19 February 2021.
Wie Bauunternehmen und Bauherren vorbeugen können
Seit dem vierten Quartal 2020 sind die Preise für Baustoffe stark angezogen. Medienberichten zufolge verteuerte sich allein der Preis für Holz um 15-20 %, der Preis für Mineralölerzeugnisse steigerte sich um 15 %, für Dieselkraftstoffe um 20 %. EPS-Dämmstoffe für Fassaden kosten sogar rund 25 % mehr, als dies noch im Dezember der Fall war. Betonstahl ist seit September nochmals um 30 % teurer geworden.
Since the fourth quarter of 2020, prices for building materials have risen sharply. According to media reports, the price of wood alone increased by 15-20 %, whilst prices for petroleum products and diesel fuel rose by 15 % and 20 % respectively. Styropor insulation materials for facades also cost about 25 % more than in December. Reinforced steel has become 30 % more expensive since September.
The High Court recently considered whether a creditor can be a victim to, and obtain relief for, a transaction which is reversed before the claim is even brought and the creditor is put back to the position they were in before the transaction took place.
Timeline
Austria is gearing up to implement the EU Directive on Restructuring and Insolvency (known as the Restructuring Directive). We anticipate that the Restructuring Regulation (ReO) will enter into force on 17 July 2021.
The core element of the Restructuring Directive (and of the implementing law) is the promotion of a new restructuring procedure, to avoid the need for formal insolvency proceedings.
The restructuring proceedings
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?