Marex Financial Limited v. Carlos Sevilleja Garcia [2017] EWHC 918 (Comm)

This recent decision on a jurisdictional challenge has provided greater clarity and potentially created a tortious cause of action where a debtor dissipates assets prior to judgment and subsequent freezing order.

Background

Part 15 Insolvency Rules 2016 consolidates the rules in relation to notices, voting rights, exclusions and appeals introducing some much needed consistency between the different insolvency processes. Most of the changes are minor, but the new Rules also introduce two radical changes:

1. The abolition of physical meetings as the default decision making mechanism in all insolvency processes, and

2. New decision making procedures (including deemed consent which will be covered in next week's update.)

An update on the changes to CVA's brought about by the introduction of the New Rules.

1. CONSOLIDATION OF THE RULES

1.1. The New Rules applicable to CVA's are found at rules 2.1 to 2.45 of the New Rules, (formerly found between 1.1 to 1.55 of the Insolvency Rules 1986 ("IR86")). There has been an element of consolidation of IR86 applicable to CVA's and relating to:

Victoria, Samnuggur and Titaghur

The Scottish Court of Session considers the interaction of Indian insolvency proceedings for three Scottish Companies that had also been placed into Administration in Scotland.

Background

The Victoria Jute Company Limited ("Victoria"), The Samnuggur Jute Factory Limited ("Samnuggur") and Titaghur plc ("Titaghur") were all incorporated in Scotland, but had been carrying out their business in India.

Alan Bennett, South West chair of insolvency trade body R3 and Partner at Ashfords LLP, advises people on how to identify, assess and tackle money issues which may have arisen over the Christmas period, so they can avoid a debt hangover in 2016.

Recent research by R3 found that 31% of people in the South West are worried about their current level of debt. Credit card repayments are the main cause of concern for those with debt worries, followed by an overdraft and mortgage repayments.

Restructuring & Insolvency analysis: Connor Pierce, solicitor at Ashfords LLP, examines a High Court judge’s dismissal of an appeal against a deputy registrar’s refusal to set aside a statutory demand made on the appellant, which was based on a personal guarantee he had given the respondent.

Wagner v White [2018] EWHC 2882 (Ch), [2018] All ER (D) 16 (Nov)

What are the practical implications of this case?

The case is a useful authority for statutory demands founded on personal guarantees.

In an urgent application, the Court of Appeal held that a CVA should be precluded from becoming effective where an unanticipated claim of €126.7m was submitted after the CVA was approved but before the statutory bar on new claims had lapsed.

The Facts

Mr Brown was declared bankrupt on 12 May 2016, following possession proceedings and costs order against him which had not been paid. Mr Brown did not accept that the original litigation leading to his bankruptcy was valid, and as a result did not accept that the bankruptcy proceedings were valid either. Mr Brown represented himself at all hearings and refused legal representation or assistance.

The Facts

PV Solar Solutions Ltd (the "Company") supplied and installed solar panels. When the government reduced preferential tariffs, the Company's profits were affected and it entered Administration in May 2013. The Company subsequently entered into voluntary Liquidation in November 2014.

The Facts