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    BHS: wrongful trading, director's duties, "misfeasant trading" and the personal liability of the directors
    2024-07-15

    In March 2015 the major high street retailer British Home Stores (BHS) was acquired for £1 by Retail Acquisitions Limited (RAL), a company owned by Mr Dominic Chappell. Mr Chappell became a director of the BHS entities upon completion of the purchase, together with three other individuals.

    Filed under:
    United Kingdom, Company & Commercial, Insolvency & Restructuring, Litigation, Stevens & Bolton LLP, UK House of Commons
    Authors:
    David Steinberg , Tim Carter , Joanna Charter
    Location:
    United Kingdom
    Firm:
    Stevens & Bolton LLP
    Broom v Aguilar
    2024-07-15

    Although an insolvency case, the judgment of His Honour Judge Paul Matthews, sitting as a High Court Judge, in Broom v Aguilar [2024] EWHC 1764 (Ch) deals with a service issue of more general importance.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Wedlake Bell, Non-fungible tokens
    Authors:
    Frances Coulson
    Location:
    United Kingdom
    Firm:
    Wedlake Bell
    Hellard v OJSC Rossiysky Kredit Bank
    2024-07-15

    The judgment of Nicholas Thompsell, sitting as a Deputy High Court Judge, in Hellard & Ors v OJSC Rossiysky Kredit Bank & Ors [2024] EWHC 1783 (Ch) deals with three questions raised by an application of the trustees in bankruptcy of Anatoly Leonidovich Motylev for directions under s 303(2) Insolvency Act 1986:

    (1) Should the trustees treat certain Russian bank creditors as being caught by the sanctions imposed under the Russia (Sanctions) (EU Exit) Regulations 2019?

    Filed under:
    United Kingdom, Banking, Insolvency & Restructuring, Litigation, Tax, Trade & Customs, Wedlake Bell, HM Revenue and Customs (UK), Office of Financial Sanctions Implementation (UK)
    Authors:
    Frances Coulson
    Location:
    United Kingdom
    Firm:
    Wedlake Bell
    Arbitration agreement does not prevent winding up petition
    2024-07-15

    The Privy Council has recently delivered a landmark judgment on the interplay between arbitration agreements and winding up petitions. The Board held that the English case of Salford Estates (No 2) Ltd v Altomart Ltd [2014] EWCA Civ 1575; Ch 589, which had adopted a pro-arbitration approach to stay or dismiss winding up petitions based on debts covered by arbitration agreements, even if the debts were not genuinely disputed on substantial grounds was wrongly decided.

    Filed under:
    Global, United Kingdom, Arbitration & ADR, Insolvency & Restructuring, Litigation, CMS Cameron McKenna Nabarro Olswang LLP, Liquidation, Arbitration Act 1996 (UK)
    Authors:
    Kushal Gandhi , Richard Bamforth
    Location:
    Global, United Kingdom
    Firm:
    CMS Cameron McKenna Nabarro Olswang LLP
    Important Changes to Reckless Trading Test
    2024-07-12

    Certain amendments to the reckless trading provisions of section 610 of the Companies Act 2014 contained in the Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024Opens in new window (the “Act”) came into force on 1 July 2024 (pursuant to S.I. 303 of 2024).

    Filed under:
    Ireland, United Kingdom, Insolvency & Restructuring, Litigation, Matheson LLP
    Authors:
    Brendan Colgan , Kevin Gahan , Julie Murphy O'Connor , Tony O'Grady
    Location:
    Ireland, United Kingdom
    Firm:
    Matheson LLP
    Arbitration and insolvency
    2024-07-17

    Sian Participation Corp (In Liquidation) (Appellant) v Halimeda International Ltd (Respondent) (Virgin Islands) [2024] UKPC 16

    Filed under:
    United Kingdom, Arbitration & ADR, Insolvency & Restructuring, Litigation, Stevens & Bolton LLP, Liquidation, Insolvency, Supreme Court of the United States
    Authors:
    Catherine Penny
    Location:
    United Kingdom
    Firm:
    Stevens & Bolton LLP
    Court awards first security for costs order in respect of a challenge to a restructuring plan
    2024-07-16

    Court awards first security for costs order in respect of a challenge to a restructuring plan.

    Key takeaways

    The High Court has for the first time awarded security for costs in respect of a challenge to a proposed English restructuring plan.1

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, A&O Shearman, Companies Act 2006 (UK)
    Authors:
    Joel Ferguson , Nick Charlwood , Susanna Charlwood
    Location:
    United Kingdom
    Firm:
    A&O Shearman
    Insolvency vs Arbitration - Privy Council’s revival of the “Established Approach”
    2024-07-22

    How does an arbitration clause, or an exclusive jurisdiction clause in favour of foreign courts, affect insolvency proceedings?

    The effect of an arbitration clause, or an exclusive jurisdiction clause in favour of foreign courts, on insolvency proceedings has been a topic of longstanding debate in the Courts of Hong Kong, England and other common law jurisdictions.

    Filed under:
    Hong Kong, United Kingdom, Arbitration & ADR, Insolvency & Restructuring, Litigation, A&O Shearman, Liquidation
    Authors:
    Matt Bower , Fai Hung Cheung , Melody Chan , Edward Taylor , Viola Jing , Karen Chan
    Location:
    Hong Kong, United Kingdom
    Firm:
    A&O Shearman
    UK Supreme Court clarifies basis of ‘knowing receipt’ claims arising from breach of fiduciary duty
    2024-07-22

    "The law on 'knowing receipt' has perplexed judges and academics alike for several decades" – Lord Burrows (paragraph 99).

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Mayer Brown, Insolvency Act 1986 (UK), UK Supreme Court
    Authors:
    Stephen Moi , Charlotte Stewart Jones , Michael Fiddy , Alexandra Wood
    Location:
    United Kingdom
    Firm:
    Mayer Brown
    IET’s new revision 7 of the Model Form of Contract (MF/1): What has changed?
    2024-07-19

    10 years after the publication of Revision 6 (2014 edition) of the Model Form of Contract for the design, supply and installation of electrical, electronic and mechanical plant (MF/1), the Institution of Engineering and Technology (IET) has released Revision 7 (2024 edition), shortly followed by an erratum containing a summary of corrections.

    Regular users of the MF/1 may be comforted to know that the risk profile of the contract has not changed though the door has been opened to extending the duration of liability for latent defects, as discussed below.

    Filed under:
    United Kingdom, Company & Commercial, Construction, Employment & Labor, Insolvency & Restructuring, Charles Russell Speechlys, Modern slavery, Force majeure, Bribery Act 2010 (UK), Modern Slavery Act 2015 (UK), Companies Act 2006 (UK), Corporate Insolvency and Governance Act 2020
    Authors:
    Melanie Tomlin , Joseph Bearman
    Location:
    United Kingdom
    Firm:
    Charles Russell Speechlys

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