The recent decision of the London Commercial Court in PJSC Tatneft v Gennady Bogolyubov & Ors [2018] EWHC 1314 (Comm) highlights the importance that the Court will attach to full asset disclosure by a respondent to ensure the effectiveness of a freezing order, even in circumstances where the value of a respondent’s assets exceeds the sum frozen by the order.
Freezing Orders: What Are They?
In the recent decision in Carlos Sevilleja Garcia v Marex Financial Limited,1 the Court of Appeal helpfully summarised the justifications for the English law rule against claims for reflective loss and confirmed that the rule applies equally to unsecured creditors of a company as it does to shareholders.
Highlights
UK High Court Confirms Broad Definition of a “Financial Institution” – (Re Olympia Securities Commercial Plc (in administration) [2017] EWHC 2807 (Ch))
The High Court has confirmed it will adopt a broad definition of a “financial institution” for the purposes of the transferability provisions in a loan agreement including: (i) a newly incorporated company with a share capital of £1, (ii) an entity that has not traded and (iii) a special purpose vehicle established for the purpose of acquiring debt.
Facts
Accountability is the major theme of the recent government consultation regarding ‘Insolvency and Corporate Governance’, which follows high profile failures such as BHS and Carillion. The consultation contains proposals relating to four main areas as set out below.
Sales of businesses in distress
The proposal represents a significant extension of the current duties owed by directors. Under the proposal, a director of a parent company may be held liable for losses following a sale of a subsidiary if:
Se trata de un sumario y elocuentememo firmado por dos juristas de Kirkland & Ellis LLP, London, y publicado enInternational Corporate Rescue, vol. 15, issue 6, 2018, que resumo en lo que importa. Siempre suponiendo un hard Brexit. (1) Los tribunales de UK no reconocerán —salvo implementación por UK de la Ley Modelo de UNCITRAL— procedimientos de insolvencia extranjeros si afectan a titulares de créditos sometidos a Derecho inglés que disienten del acuerdo y no estuvieron presentes en el procedimiento extranjero.
Análisis GA&P | Julio 2015 1 N. de la C.: En las citas literales se ha rectificado en lo posible —sin afectar al sentido— la grafía de ciertos elementos (acentos, mayúsculas, símbolos, abreviaturas, cursivas...) para adecuarlos a las normas tipográficas utilizadas en el resto del texto. 1.
1. The characterisation of art. 1(1) ERIP and role of the Annex
Summary
The much anticipated judgement of Mr Justice Snowden in relation to a restructuring plan proposal (the “Plans”) made by Virgin Active Holdings Limited, Virgin Active Limited and Virgin Active Health Clubs Limited (the “Plan Companies”) was handed down on 12 May 2021.
Last week, in Re a Company (Application to Restrain Advertisement) [2020] EWHC 1551 (Ch) the High Court restrained the advertisement of a winding up petition on grounds of the impending changes to insolvency legislation, which are intended to have a retrospective effect.
The Court of Justice of the EU (CJEU) has held once again that the Insolvency Directive does not require member states to put measures in place to fully fund lost pension rights on the insolvency of an employer. This conclusion is contrary to some reporting in the pensions press earlier today.