Angel Group Ltd and others concerned a group of companies in Administration where the director asserted that the companies’ bank had “conspired to artificially distress the business”
The facts
In the case of Angel Group Ltd and others [2015] EWHC 3624, Administrators from KPMG were appointed to Angel Group Limited and to seven of its subsidiaries. The Bank of Scotland was the only secured creditor, and was owed a residual balance of £20 million.
Summary: On 8 September 2016 Mr Justice Snowden handed down his judgment in Glenn Maud v Aabar Block Sarl & others [2016] EWHC 2175 (Ch) in which he considered how the court should deal with a bankruptcy petition where the petitioning creditor may have an ulterior purpose for seeking a bankruptcy order.
The High Court has determined the circumstances in which sums drawn down under a self-investment personal pension scheme could be subject to an income payments order.
The background
Summary
This briefing looks at the “period of grace” provisions that can apply in some cases to the debts that arise on employers under section 75 of the Pensions Act 1995.
In a multi-employer scheme, if one employer ceases to employ any active members, a s75 debt can arise on that employer. The period of grace provisions allow the employer to serve a notice so that the debt is suspended, giving the employer a period (at least a year, but potentially up to three years if the trustees agree) in which to employ an active member.
The Insolvency Service tweeted on 27 July 2016 with some satisfaction that last year it disqualified 1,208 directors for unfit conduct.
Our economy is reliant upon business people and entrepreneurs taking risks and trying new enterprises and the insolvency and rescue culture is there to support that but there must also be an appreciation that there is a difference between bad luck, bad management and bad behaviour.
Does the Insolvency Service differentiate on this?
This is the first in a series of blogs that we are posting to assist SME’s in informing and making informed decisions as to your debtors and options in case your business experiences serious financial difficulties.
Are your clients paying within terms? Are slow or non-paying clients hurting your cash-flow? Don’t want the time and expense of costly litigation?
Ever wondered what ‘administration’, in the company/business sense actually means? Partner and Insolvency specialist Chris McDuff explains here in the second of our blog series on options for an SME when it finds itself experiencing financial difficulties.
Administration
The Insolvency Act 1986 (the Act) and theInsolvency Rules 1986 (the Rules) govern the administration process for England and Wales.
What is Administration?
Agriculture is a long-term business and most people within the sector are proud of its reputation for straight talking and fair dealing. Debt issues can arise at any stage, but there are particular cyclical problems at the moment which mean that there is more debt-chasing activity, as cashflow pressures intensify.
Original news
Goldcrest Distribution Limited v McCole and others [2016] EWHC 1571 (Ch)
What is the background to this case?
The claimant lender, C, sought possession of residential property owned jointly by D1 and his partner D2 (the property) pursuant to a purported legal charge entered into by both the D1 and D2 (the charge). The charge secured D1’s liability to C arising under a guarantee whereby D1 had guaranteed the indebtedness of his company, "Ascot" to C.
Bailey v Angove’s Pty Ltd [2016] UKSC Civ 47
SUMMARY
The Supreme Court in this case had to consider whether an agent’s authority to accept payments had been ended by the principal’s termination of the agency agreement or if the agent’s authority was irrevocable in spite of the termination notice and permitted the agent to receive remaining payments due from customers for goods supplied during the term of the agreement.
BACKGROUND