The Government has announced that from October 2015 it plans to increase the minimum threshold for creditors’ bankruptcy petitions from £750 to £5,000 and the maximum level of debt in respect of which a Debt Relief Order (“DRO”) can be obtained from £15,000 to £20,000.
It is now settled law that when an Administrator retains occupation of leasehold property on the basis that it will benefit of the company’s creditors, rent that relates to that period of occupation must be paid by the Administrator as an expense of the administration.
Anyone using arbitration clauses should note the Court of Appeal decision made on Monday 8 December, to the effect that a winding up petition is not automatically stayed because the petition debt arises from a contract containing a mandatory arbitration clause.
This important development could assist creditors enforcing strong claims against debtors incorporated in many offshore financial centres as well as in England.
From April 2015, success fees and After the Event insurance premiums will no longer be recoverable as part of the costs ordered on the successful outcome of insolvency litigation.
However, this will only apply to funding arrangements entered into after April 2015. There is still time for savvy IPs to ensure that current cases can benefit from the current arrangements but in order to do so they will need to take steps now to collect and collate the evidence on which their claims will rely.
In recent Court decisions, the balance between Administrators and Landlords has shifted backward and forwards with great regularity. Both sides have just learned that the goal posts have moved once more.
The judgment from a unanimous Court of Appeal last week has overruled the previous authorities on the issue of whether rent is payable as an expense in an Administration. In light of the decision in Jervis v Pillar Denton Ltd and Others, the decisions in Goldacre and Luminar are no longer of any effect.
The liquidation of developers, contractors and sub-contractors are a regular occurrence in both large and small scale construction projects, with the insolvent company often left with claims against other firms involved in the development. The right to adjudicate and then make use of the summary judgment route to enforce the adjudicator’s decision has long been the most powerful tool at the disposal of the creditor company.
After a number of years of consultation the long awaited Insolvency (England and Wales) Rules 2016 will finally come into effect today.
The new regulations aim to provide a modern and concise guide for Insolvency Practitioners and other relevant stakeholders and will consolidate various amendments made to the original rules introduced in 1986.
If these intended reforms work, they will streamline the operation of Administrations and Liquidations.
After an extended period of consultation and drafting the Insolvency (England and Wales) Rules 2016, were published and laid before Parliament on 25 October 2016.
The new rules will come into effect on 6 April 2017 and will represent the most significant change to the procedures relating to almost all types of insolvency process since 1986.