Introduction

When parties agree to submit disputes to arbitration there is often language defining the issues that can be determined by arbitration, such as ‘any dispute arising out of or in connection with this contract, including any question regarding its existence, validity or termination’ (LCIA recommended clause). Once a dispute has arisen the exact scope of the issues before the arbitral tribunal will likely be detailed in the terms of reference or other procedural document.

When individuals and certain entities (such as partnerships, trusts and other unincorporated bodies) have debts that they are unable to repay to their creditors, they may consider or be faced with bankruptcy, which is known as sequestration in Scotland. However, sequestration is just one avenue. Alternative statutory debt solutions are available, which can provide breathing space and allow debts to be repaid over time, without creditor pressure.

Purkiss v Kennedy & Ors [2024] EWHC 1081 (Ch) is another judgment in a string of cases arising out of schemes designed to enable self-employed individuals to avoid paying income tax and national insurance on their remuneration. The decision of the Supreme Court in RFC 2012 Plc v AG for Scotland demonstrated the flaws that often mean such schemes fail.

Since the pandemic, during which insolvency rates were low due to Government measures, there has been a considerable rise in insolvencies in the UK and many other jurisdictions. High interest rates have significantly increased the cost of borrowing and many companies are saddled with mountains of debt that was taken out in better times and which are now difficult to repay. In addition, high inflation and energy costs, lower consumer confidence and volatile supply chains have all contributed to making the last few years very difficult for businesses.

Case: Darty Holdings SAS v Geoffrey Carton-Kelly (as additional liquidator of CGL Realisations Limited) [2023] EWCA Civ 1135

Banned! Fraudsters!– Terms used by the Insolvency Service for directors who abused the government backed loan scheme which was put in place to help businesses struggling during the pandemic.

Phoenix Tech Ltd had carried on business to defraud HMRC by participating in a kind of VAT fraud sometimes called “missing trader intra-community” fraud or “carousel” fraud. It had submitted a VAT return claiming the right to deduct VAT and a repayment in respect of various transactions in the sum of £4.5 million. HMRC denied the input tax claim in relation to the transactions and issued a misdeclaration penalty for £607,387. The company appealed to the First-tier Tribunal (Tax Chamber).

In Re a Company [2024] EWHC 1070 (Ch) was an application to restrain presentation of a petition on five grounds:

(1) that the judgment debt was time-barred; (2) that it was unclear if there had been an acknowledgment of the debt within the limitation period; (3) that there was a substantial dispute as to whether the judgment debt had been satisfied; (4) that the company was solvent; and (5) whether it was appropriate to grant an injunction.

While securitisations offer numerous benefits, there are a number of important points for originators to consider to facilitate entering into a securitisation transaction and to avoid prolonged legal work further down the line. In this article, we briefly discuss essential points that originators should be aware of and discuss with prospective lenders or arrangers prior to structuring a securitisation.

In a long-running dispute arising out of a failure to supply gas, the English Commercial Court recently ordered that a prime London commercial property be transferred to the award creditor in part-satisfaction of a USD 2.6 billion arbitration award. In this article, we explore the case of Crescent Gas Corporation Ltd v National Iranian Oil Company & Anor [2024] EWHC 835 (Comm) and look at how the Insolvency Act was used to support enforcement of the award.