London schemes industry set back! Are we about to see an end to aggressive “schemes forum shopping”?

When any industry faces challenging times, thoughts turn to what might happen to those companies which are unable to maintain their solvency and service their existing debt.

Padwick Properties Limited v Punj Lloyd Limited [2016] EWHC 502 (Ch)

FACTS

This case concerned a property in Stockport let at an annual rent of £784,268, where Padwick was landlord to a company named SCL. The defendant had guaranteed SCL's performance of its obligations.

The latest iteration of the Sun Capital litigation has confirmed once again what many restructuring professionals have known for a long time - that pension liabilities have a nasty habit of kicking investors where it hurts, often when least expected. Our recent blog explains the decision and provides some insights on the case.

The serious consequences of an adjudication of bankruptcy against an individual has long justified the strict requirement that bankruptcy petitions be personally served. Rule 6.14 of the Insolvency Rules 1986 requires as much, and says that ‘service shall be effected by delivering to [the debtor] a sealed copy of the petition’. But what constitutes delivery where the debtor declines to accept the petition from the process server?

The applicant applied to strike out a winding up petition that had been presented against it. The parties had entered into two construction contracts under which the applicant had subcontracted the fabrication and erection of steelworks to the respondent in relation to two separate sites. The contracts failed to provide an adequate mechanism for payment such that the Housing Grants, Construction and Regeneration Act 1996 (as amended) (HGCRA 1996) and the Scheme for Construction Contracts (England and Wales) Regulations 1998 (as amended) applied.

Picard, a trustee in bankruptcy, launched proceedings under the anti-avoidance provisions of the US Bankruptcy Code against Vizcaya, a BVI investment fund which had invested approximately $330m with Bernard Madoff via his New York firm. Prior to his fraud being discovered in late 2008, Vizcaya had been repaid $180m.Picard obtained a judgment against Vizcaya and its shareholders in the New York Bankruptcy Court. The judgment against Vizcaya was for $180m, $74m of which had been transferred to its Gibraltar holdings.

Commercial Litigation

When can you be deprived of costs where you better your Part 36 offer?

OTL was placed into compulsory liquidation. Prior to this it transferred monies to a trust located in HK of which N was perceived to be the principal trustee. The OR as liquidator applied for an order under s 236(3) of the Insolvency Act 1986 (IA 1986) that N produce a witness statement with supporting documents in relation to the company’s affairs. The primary question for HHJ Hodge QC was whether s 236(3) of the IA 1986 could have extra-territorial effect as N was resident in HK.

Held

A rare High Court decision on an unopposed lease renewal under the Landlord and Tenant Act 1954 has underlined the importance of robust and thorough expert evidence – and the dangers of getting this wrong.