A set of new insolvency rules are coming into force, as of April 6 2017, as Stephen Young explains in the following bulletin. In short, the previous insolvency rules that have been in force since 1986 no longer apply and instead a whole new set of rules now must be used.
The new Insolvency (England & Wales) 2016 rules will apply to all cases, both existing and new.
In short, the main changes are as follows:
1. All of the Parts and Numbering of the old rules have been completely changed so each type of insolvency has its own new Part.
In the recent case of South Coast Construction v Iverson Road Limited [2017] EWHC 61 (TCC), South Coast Construction ("South Coast") had obtained an adjudicator’s decision against the employer, Iverson Road Limited (“Iverson Road”), in a sum approaching £900,000. Iverson Road refused to pay the award so South Coast commenced enforcement proceedings in the Technology and Construction Court (TCC).
Summary
Clarification on when the court should lift the administration moratorium in respect of litigation.
The Facts
Introduction
Amit has recently acted for an IP whose office is one of the largest appointment takers in the country. He appeared for the respondent at several hearings on an application to review a BTO.
Background
The out-going officeholder had his licence revoked by the IPA for misappropriation of monies, running to six figures, from numerous estates. This resulted in a BTO, which was granted by the Court on paper.
The Facts
The applicants, who had successfully appealed the rejection of their proof of debt by the liquidator of Burnden Group Limited, sought an order that the liquidator pay their costs of the appeal personally in circumstances where the relevant company had no assets and their costs exceeded £290,000 (including VAT).
The Decision
After a number of years of consultation the long awaited Insolvency (England and Wales) Rules 2016 will finally come into effect today.
The new regulations aim to provide a modern and concise guide for Insolvency Practitioners and other relevant stakeholders and will consolidate various amendments made to the original rules introduced in 1986.
If these intended reforms work, they will streamline the operation of Administrations and Liquidations.
When someone is made bankrupt, all property owned by them, at the date of bankruptcy, forms part of the bankruptcy estate. Property not only includes physical assets, such as goods, land and money, but also intangible assets, such as a cash balance with a bank, debts, benefits under contracts, legacies and causes of action. These assets are known as ‘things in action’. The bankruptcy estate vests in a trustee in bankruptcy upon appointment.
When you are focused on the day-to-day running of a business, it can be all too easy to miss the warning signs that you may be at risk of insolvency. Often, the signs might be interpreted as a “blip” or a “minor issue” paired with the assumption that the company can trade out of it. In this article, Stephen Young identifies some of the key warning signs that directors should be aware of.
The new Insolvency (England and Wales) Rules 2016 (SI 2016/1024) came into force on April 6, 2017 (the 2016 Rules). The 2016 Rules replace the Insolvency Rules 1986 (SI 1986/1925) and their 28 subsequent amendments (the 1986 Rules) and represent a continuation of the Insolvency Service’s recent efforts to modernize and implement policy changes under various pieces of primary legislation.
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: