KEY POINTS

The CE-File system made electronic working mandatory for insolvency proceedings in

London, with effect from 25 April 2017. Insolvency filings outside London can continue to be made on paper. Potential users should create a CE-File account and familiarise themselves with the

system as soon as possible. While the system will bring users increased flexibility, including the ability to make filings

Reforms are needed to the current company voluntary arrangement (CVA) process, according to both R3 and the British Property Federation (BPF).

R3 (the trade association for the UK’s insolvency, restructuring, advisory, and turnaround professionals) has published a research report recommending a number of reforms to improve the effectiveness and reputation of CVAs. These include:

Welcome to the results of our third annual Pensions in Restructuring Survey.

This year's survey gathers views on the issues with pensions in corporate restructuring, with a particular focus on the points arising from the Department for Work and Pensions' recent white paper, "Protecting Defined Benefit Pension Schemes".

The new Insolvency Practice Direction came into force on 25 April 2018. Some of the key changes to the Practice Direction include: 

British department store House of Fraser have announced plans to close 31 stores across the UK, placing thousands of jobs at risk. Proposals have been filed for Company Voluntary Arrangements ("CVA") of House of Fraser (Stores) Ltd and House of Fraser Ltd which it claimed are central to the significant restructuring of the business.

In May, it was announced that the parent group of House of Fraser would sell a 51% stake to the Chinese owner of Hamleys, C.Banner International, who would inject £70 million into the business.

A recent case in the UK (Phones 4U Limited -v- EE Limited) serves as a warning to businesses of the unintended, and potentially costly, consequences of issuing inadequate termination notices to contractual counterparties.

Background

On June 22, creditors of House of Fraser will vote on CVA proposals in the culmination of a bid to restructure the retailer which has hit headlines in both property and mainstream news. The proposals would see 31 of House of Fraser's 59 stores closed, and a 25% rent reduction in respect of a further 10.

The Facts

This was an appeal of a decision of Chief Registrar Baister.

Dean and Richard Robbins were directors of a company which entered Creditors Voluntary Liquidation in February 2011. Dean Robbins was the sole shareholder. It appears that the Company had somewhat basic accounting practices and did not keep detailed books and records. It transpired that, prior to entering Liquidation, the Company had paid substantial sums to the Directors in various instalments, which the Liquidators sought to recover under three separate claims.

Cambridge Analytica, the data analytics firm at the centre of the Facebook data scandal, is closing its doors and commencing insolvency proceedings. The company has been unable to recover from the bad press coverage and large legal fees in dealing with the aftermath of the Facebook data breach allegations.

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.