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    Appeal of UK case on effect of events of default on netting and payment obligations dismissed on consent
    2010-11-05

    If you were waiting to hear what the English Court of Appeal had to say about the lower court decision in Marine Trade S.A. v. Pioneer Freight Futures Co. Ltd. you’ll be disappointed, as the appeal was dismissed by consent of the parties on October 22, 2010.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Shipping & Transport, Stikeman Elliott LLP, Bankruptcy, Debt, Unjust enrichment, Common law, Default (finance), Contract for difference, International Swaps and Derivatives Association, Insolvency Act 1986 (UK), Court of Appeal of England & Wales, High Court of Justice (England & Wales)
    Location:
    United Kingdom
    Firm:
    Stikeman Elliott LLP
    Insolvency figures paint contrasting picture
    2010-11-05

    A leading South Yorkshire insolvency expert has warned of a risk of a rise in corporate insolvencies in the new year.  

    The Government Insolvency Service third quarter figures show a slight decline in all forms of corporate insolvency and a big decline in the number of administrations (down 35 per cent on this time last year and 19 per cent down from the previous quarter).  

    Filed under:
    United Kingdom, Insolvency & Restructuring, Kennedys Law LLP, Bankruptcy, Solicitor, Dispute resolution, Consumer debt, Stakeholder (corporate), Self-employment, HM Revenue and Customs (UK)
    Location:
    United Kingdom
    Firm:
    Kennedys Law LLP
    Landlord victory as CVA fails to release guarantee
    2010-11-05

    The High Court has struck down a company voluntary arrangement on the ground that it unfairly prejudiced a landlord who was to lose the benefit of a guarantee given by the tenant’s parent company. The judge said it was “unreasonable and unfair in principle” to require the landlord to give up the guarantee and there was “no sufficient justification” for requiring the landlord to accept a sum of money in lieu.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Real Estate, Dechert LLP, Retail, Surety, Landlord, Leasehold estate, Electricity, Liquidation, Prejudice, Parent company, Trustee, High Court of Justice (England & Wales)
    Authors:
    David Gervais
    Location:
    United Kingdom
    Firm:
    Dechert LLP
    Non-disclosure of corporate re-organisation and breach of warranty (again)
    2010-11-10

    By a judgment handed down on 26 October 2010 in Sugar Hut Group Ltd & Ors v Great Lakes Reinsurance (UK) Plc & Ors [2010] EWHC 2636 (Comm), Mr Justice Burton in the Commercial Court held that insurers were entitled to avoid, for a material non-disclosure of a corporate re-organisation, a policy which could otherwise have covered losses arising from a fire at the premises of the insureds.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Insurance, Litigation, Herbert Smith Freehills LLP, Shareholder, Breach of contract, Reinsurance, Public limited company, Non-disclosure agreement, Warranty, Underwriting, Subsidiary, AXA, High Court of Justice (England & Wales), Commercial Court (England and Wales)
    Authors:
    Alexander Oddy , Greig Anderson
    Location:
    United Kingdom
    Firm:
    Herbert Smith Freehills LLP
    Scottish Lion - waiver of privilege by creditor participating in scheme of arrangement
    2010-11-11

    In another instalment of the Scottish Lion saga (see our previous blog entries here, here and here) the Outer House of the Court of Session (the Scottish First Instance Court) has ruled that where a scheme creditor submits documents in support of his claim fo

    Filed under:
    United Kingdom, Scotland, Insolvency & Restructuring, Litigation, Locke Lord LLP, Waiver, Work-product doctrine, Voting, Valuation (finance), Court of Session
    Authors:
    Victoria Anderson , Jeanne Kohler
    Location:
    United Kingdom
    Firm:
    Locke Lord LLP
    UK Determinations Panel gives reasons for imposing financial support directions on six Lehman companies
    2010-10-08

    The Determinations Panel gave its reasons for imposing financial support directions (FSDs) on six Lehman Brothers companies on 29 September 2009. SNR Denton represented 22 of the 44 companies targeted for FSDs. The Determinations Panel accepted our submission that it would not be reasonable to impose an FSD on any of the companies we represented because of the Pensions Regulator's failure to particularise its case against them.

    Background

    Filed under:
    United Kingdom, Employee Benefits & Pensions, Insolvency & Restructuring, Dentons, Debt, Holding company, Judicial review, Defined benefit pension plan, Parent company, The Pensions Regulator (UK), Lehman Brothers, Trustee
    Authors:
    Alan Jarvis , Elmer Doonan , Andrew Patten
    Location:
    United Kingdom
    Firm:
    Dentons
    Warning to check lease history
    2010-10-11

    Commercial sellers need to be particularly careful when purporting to sell property with vacant possession. In a recent case, Area Estates Limited v Weir (2010), Area Estates tried to sell a site to Weir, telling Weir that Area’s former tenant had surrendered its lease, so that Area could sell with vacant possession.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Real Estate, Howes Percival LLP, Bankruptcy, Breach of contract, Landlord, Leasehold estate, Interest, Economy, Vesting, Trustee
    Location:
    United Kingdom
    Firm:
    Howes Percival LLP
    Regulated apportionment arrangements
    2010-10-11

    Summary. The Pensions Regulator (the Regulator) has issued a statement on regulated apportionment arrangements (RAA) and employer insolvency (the statement).

    Filed under:
    United Kingdom, Employee Benefits & Pensions, Insolvency & Restructuring, Mayer Brown, Share (finance), Debt, Due diligence, Buyout, The Pensions Regulator (UK), Pension Protection Fund, Pensions Act 1995 (UK), Trustee
    Location:
    United Kingdom
    Firm:
    Mayer Brown
    Limitation - does time stop running when a company is in administration?
    2010-10-14

    The Limitation Act 1980 prescribes various periods of time in which a claim must be brought. In the event that this is not undertaken within the specified period, the cause of action will be statute barred and as such unenforceable.

    In the case of a simple contract, the period is six years and in general begins to run from the date on which the cause of action accrued. In order to 'stop the clock', proceedings (a claim) will have to be brought.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Penningtons Manches Cooper LLP, Debtor, Statute of limitations, Debt, Consent, Liability (financial accounting), Liquidation, Limitation Act 1980 (UK), Insolvency Act 1986 (UK), Enterprise Act 2002 (UK)
    Authors:
    Jonathan Craft
    Location:
    United Kingdom
    Firm:
    Penningtons Manches Cooper LLP
    Before you charge in - Part 10. A bird in the hand...when does the right to set-off arise?
    2010-10-20

    Knowing how much money you owe and are owed is critical when considering disputes with other parties. You need to consider whether a right of set-off exists between you and the other party.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Gowling WLG, Bankruptcy, Debtor, Arbitration clause, Debt, Liquidation
    Location:
    United Kingdom
    Firm:
    Gowling WLG

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