The court will not always set aside a property transfer order in matrimonial proceedings where the party transferring the property, as part of a clean break order, becomes bankrupt shortly afterwards, and there are allegations of lack of consideration or transfer at an undervalue.
Background to Re Permacell
With commentators predicting that the real impact of last summer’s credit crunch on corporate liquidations has yet to be felt, how can landlords and tenants of commercial properties prepare for a potential rise in the number of corporate insolvencies?
LANDLORDS’ REMEDIES - THINK OUTSIDE THE BOX
The landlord of a commercial property faced with an insolvent tenant will usually have two concerns:
In Franses v Al Assad – Butterworths Law Direct 26.10.07 a freezing order was granted against the first respondent, principally in respect of £6.5m that formed part of the proceeds of sale of a property that had allegedly been owned by him. The first respondent applied to discharge the freezing order.
In Samsun Logix Corporation v Oceantrade Corporation; Deval Denizeilik VE Ticaret A.S. v Oceantrade Corporation and another – Butterworths Law Direct 18.10.07 the Defendant in both cases was subject to Chapter 11 proceedings in the US.
The lengthening of the restoration period for dormant companies may make a solvent liquidation an attractive option for some companies. James Stonebridge examines the impact of changes introduced under the Companies Act 2006.
The judgment of the Commercial Court in WASA and AGF v Lexington shows that a “follow settlements” clause in a reinsurance contract will not obviate the need for the reinsured to demonstrate that an inwards settlement falls within the terms and conditions of its outwards reinsurance. Partner Michael Mendelowitz reviews the judgment.
There is a prevailing view that landlords have not fared well in recent developments in insolvency law aimed at furthering a culture of corporate rescue. However, landlords should give a broad welcome to a recent case which sought to deal with the complicated question of what expenses should be considered as “expenses of an administration”.
Administrators to the rescue
In Lexi Holdings plc v Luqman and others – Butterworths Law Direct 17.8.07 the claimant company (the company), by its joint administrators, commenced proceedings against the first Defendant and his family, including the fifth Defendant. The company successfully applied without notice for freezing orders against the fifth Defendant.
The 4th session of the committee of governmental experts on Intermediated Securities met in May 2007 to continue negotiation of the draft Convention. The Convention deals primarily with the rights of account holders in relation to intermediated securities - securities held through financial intermediaries.