On 23 June 2016, a 52% majority of the British people voted in favour of leaving the European Union. It is unclear the extent of the effect this will have, but restructuring and insolvency professionals face an uncertain future if the EC Regulation on Insolvency Proceedings 2000 and the Recast Insolvency Regulation, which replaces it in 2017, cease to apply to cross border restructurings in the UK.
This article was first published by RECOVERY News and the full article can be found online here.
Ashfords successfully acted for the Joint Trustees in Bankruptcy of Vincent Mascarenhas (deceased) in their application to discharge Freezing Orders, an Interim Charging Order and an Interim Third Party Debt Order obtained by creditors of the late Bankrupt in 2014. The Joint Trustees were not a party to the original proceedings but had standing to make the applications.
David Pomeroy, partner and head of the restructuring and insolvency team at Bristol law firm Ashfords, shares his thoughts on how the city's high streets will need to evolve in order to survive
Every week we see a report of another major high street retailer on the brink. Mothercare is the latest to announce restructure plans and RBS has announced the closure of many of its high street branches, including Clifton.
They follow hot on the heels of brand names such as Jamie’s Italian, Maplin, Toys R Us, Byron, Prezzo and New Look closing or scaling back.
The Facts
This case is the latest twist in the ongoing saga of failed fintech "unicorn" Ve Interactive ("Ve"), who entered Administration in April 2017. Certain of Ve's creditors made an application to replace its Administrators, from Smith & Williamson LLP, with new Administrators from Deloitte.
The special administrators of MFGUK have come up with a CVA proposal for its remaining ordinary creditors, which will enable the winding-up of the estate to the benefit of the creditors.
The administrators have made a number of material settlements and realisations during the administration, simplifying the estate and permitting distributions to ordinary unsecured creditors of 90p in the pound.
Litigation is full of uncertainty. Even the strongest case carries risks and a primary consideration when embarking on any litigation is whether the proposed defendant is able to pay.
If your business is being pressed to disclose details of your insurance coverage prior to a claim being brought against it are you obliged to do so?
The recent case of Peel Port Shareholder Finance Company Ltd. v Dornoch Ltd gave the High Court the opportunity to consider whether a public liability insurance policy is something that should be disclosed pre litigation.
Section 216 continues to apply to prohibit the re-use of a name or sufficiently similar name where oldco and newco have common directors.
The relevant rules now dealing with the exceptions are contained in new rules 22.1 - 22.7.
The three exceptions remain broadly the same but there are some key differences to note.
Exceptions to the prohibition
Creditors' Bankruptcy Petition
The rules for these petitions are contained in 10.6 to 10.33. This section also covers IVA supervisors making a petition. The good news is that under the new Rules, there are very few changes to the current procedure.
ECJ decides that rights in rem should be interpreted in accordance with German law, despite insolvency proceedings having been opened in France
In the recent case of SCI Senior Home (in Administration) v Gemeinde Wedemark, Hannoversche Volksbank eG, the Court of Justice of the European Union handed down judgment on the question of whether a right in rem created under national law should be considered a "right in rem" for the purposes of Article 5 of the Council Regulation (EC) 1346/2000 on insolvency proceedings (the "Insolvency Regulation").