The English High Court were persuaded to lift the automatic stay imposed under the Cross-Border Insolvency Regulations (SI 2006/1030) in relation to Korean proceedings, to allow English litigation proceedings to be continued by an unsecured creditor.
The Court of Appeal resolves some of the conflict between insolvency and pensions law in its decision on Horton v Henry.
The Court of Appeal has upheld the High Court decision of the Deputy Judge in Horton v Henry (2014) confirming that a trustee in bankruptcy cannot access uncrystallised funds in a bankrupt's pension arrangements (or force the bankrupt to access them himself).
This article was first published in Practical Law.
With the long-awaited decision of the Court of Appeal in Horton v Henry, the Looking Glass decision in Raithatha v Williamson is finally laid to rest.
1. Introduction
The Insolvency Rules 2016 (“the 2016 Rules”) were published and laid before parliament on 25 October 2016. The rules will come in to force on 6 April 2017. The following note summarises the key features of the rules. For further detail the reader is referred to the following sources:
Facts
The appellant is a company trading in electrical goods which regularly supplied Edge Electrical Ltd ('Edge'). Their standard terms provided Edge with a short period of credit before payment was required.
The recent case of James William Stares v Elgin Legal Ltd [2016] EWHC 2523 (Ch) is notable as it considers whether a former administrator can apply for an administration order and, if such an order can have retrospective effect.
Understanding the rights of your employees in redundancy is an important part of any insolvency procedure. Here we look at what happens during various administration and liquidation processes, plus the way in which redundancy entitlement is calculated.
Staff redundancy following liquidation
The Court of Session has confirmed that the administration in Scotland of a Scottish company will take priority over an Indian liquidation of the same company, regardless of where the company’s business and assets are situated. The Court has also confirmed that the validity and enforceability outside the UK of a floating charge is irrelevant to the validity of an administrator’s appointment in Scotland under that floating charge.
Recent cases we have been involved in have highlighted the need for Insolvency Practitioners to pay careful attention to the effect that block transfer orders have on administrations where the exit route is a creditors' voluntary liquidation ("CVL"). Failure to do so could risk the appointment of liquidators being invalid.
The statutory requirements
On 30 September 2016, the Competition and Markets Authority (“CMA”) published its finding that two companies involved in the online retail of licensed sport and entertainment posters and frames had breached the Competition Act 1998 (“CA98”) by entering into agreements (or, at least, ‘concerted practices’) to artificially inflate the prices charged for certain products. A formal charge was accepted by the main protagonist, Trod Limited (in administration) (“Trod”) and fines imposed, which became payable by Trod’s administrators as of 13 October 2016.