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    The Precarious Nature of Trust Assets at Home and Abroad
    2017-02-03

    In Akers (and others) v. Samba Financial Group [2017] UKSC 6, the UK Supreme Court has confirmed the limited nature of British insolvency officer-holders’ ability to void dispositions of a company’s assets held on trust. The Supreme Court also highlighted the potential dangers inherent in holding on trust assets located in jurisdictions which do not recognise common law trusts.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Private Client & Offshore Services, Latham & Watkins LLP, Insolvency Act 1986 (UK), UK Supreme Court
    Authors:
    Daniel Smith
    Location:
    United Kingdom
    Firm:
    Latham & Watkins LLP
    What is half of nothing? Wrongful trading developments in the ‘Robin Hood’ case
    2017-02-08

    Case law on wrongful trading has developed significantly over the past two years, with the cases of Ralls Buildersand Brooksincreasing judicial consideration of the conduct of directors in the period preceding an insolvency.

    Filed under:
    United Kingdom, Company & Commercial, Insolvency & Restructuring, Litigation, Reed Smith LLP, High Court of Justice (England & Wales)
    Authors:
    Charlotte Møller , Estelle Victory
    Location:
    United Kingdom
    Firm:
    Reed Smith LLP
    Schemes of arrangement - the end of the numerosity test?
    2017-02-09

    The High Court yesterday held that a Chairperson of a shareholder scheme meeting may reject votes cast against a scheme of arrangement in circumstances where the shares were acquired through an artificial share-splitting exercise designed to frustrate the scheme. It is the first English case to consider this issue and while it arose in the context of a shareholder scheme, the impact is also significant for debt restructurings implemented by way of a creditor scheme of arrangement.

    Background

    Filed under:
    United Kingdom, Corporate Finance/M&A, Insolvency & Restructuring, Litigation, Freshfields Bruckhaus Deringer, Share (finance), Shareholder
    Authors:
    Catherine Balmond , Craig Montgomery , Priyanka Usmani , Katharina Crinson
    Location:
    United Kingdom
    Firm:
    Freshfields Bruckhaus Deringer
    What does the future hold for Employment Tribunal reform?
    2017-02-14

    The Ministry of Justice has recently published its review of the introduction of Employment Tribunal (‘ET’) fees. The fees were first introduced 2013 and many groups have raised concerns that they are a potentially serious barrier to bringing claims in the ET, particularly for less well off workers and those who have just lost their jobs.

    Filed under:
    United Kingdom, Employment & Labor, Insolvency & Restructuring, Reed Smith LLP, UK MoJ
    Authors:
    Bethany Parker
    Location:
    United Kingdom
    Firm:
    Reed Smith LLP
    Directors of a solvent company are under no duty to prioritise the interests of potential creditors when entering transactions, even where there is a recognised risk of insolvency
    2017-02-14

    HENRY GEORGE DICKINSON (Claimant) v (1) NAL REALISATIONS (STAFFORDSHIRE) LTD (2) KEVIN JOHN HELLARD & GERALD KRASNER (JOINT LIQUIDATORS OF THE FIRST DEFENDANT) (Defendants) & JUDITH YAP DICKINSON (Third Party) & ROBERT WILLIAMSON (Fourth Party) [2017] EWHC 28 (Ch)

    Norton Aluminium Limited ("the Company") went into administration in August 2012 when it received a draft judgment in favour of local residents in a claim for nuisance, which resulted in substantial damages being award and likely legal costs.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Kingsley Napley, Liquidation, Liquidator (law), Companies Act 2006 (UK), Insolvency Act 1986 (UK)
    Authors:
    Katie Allard
    Location:
    United Kingdom
    Firm:
    Kingsley Napley
    When is 'close of business'?
    2017-02-15

    'Close of business' is a term many people use in their day to day working life without much thought. But what does it actually mean and should the term be used in contractual documentation?

    Agreeing to get something done by 'close of business' is a phrase often used when flexibility is required as to the time a task will be completed. It makes it clear the task will be done that day, but not by a particular time. However, what does the term mean when it is included in a contract?

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Shoosmiths LLP, Lehman Brothers
    Authors:
    Sharon Everard
    Location:
    United Kingdom
    Firm:
    Shoosmiths LLP
    Going GAGA - the problem with pharmacy lease guarantees
    2017-02-15

    You will have previously seen a landlord's consent is usually required to enable a pharmacist to assign or sell their lease to a third party.

    It is usual for the landlord's consent to be specified not to be unreasonably withheld or delayed.

    On a lease assignment a landlord will want to ensure that the tenant is of sufficient financial strength to be able to comply with the lease covenants (including payment of the rent).

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Real Estate, Charles Russell Speechlys
    Authors:
    Claire Timmings
    Location:
    United Kingdom
    Firm:
    Charles Russell Speechlys
    Protected Trust Deeds and PPI: Part Three
    2017-02-20

    The question of who is entitled to payment of compensation for PPI where a debtor has been discharged from his/her Protected Trust Deed (PTD) had given rise to conflicting judicial decisions in Scotland. In our previous article, we highlighted the uncertainty created following the decision of Sheriff Reid in the case ofDonnelly v The Royal Bank of Scotland (Donnelly) and the decision of Lord Jones in Dooneen Limited, t/a Mcginnes Associates and Douglas Davidson v David Mond (Dooneen).

    Filed under:
    United Kingdom, Scotland, Banking, Insolvency & Restructuring, Litigation, Shepherd and Wedderburn LLP, The Royal Bank of Scotland
    Location:
    United Kingdom
    Firm:
    Shepherd and Wedderburn LLP
    Vehicle hire purchase agreements and tools of the trade in bankruptcy (Mikki v Duncan)
    2017-02-21

    Original news

    Mikki v Duncan [2016] EWCA Civ 1312, [2017] All ER (D) 157 (Feb)

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Tax, Gatehouse Chambers, Bankruptcy, Unsecured debt
    Authors:
    Jonathan Titmuss
    Location:
    United Kingdom
    Firm:
    Gatehouse Chambers
    Contempt of court in bankruptcy case
    2017-02-01

    Summary

    A bankrupt was found to be in contempt of court following years of failing to comply with the terms of multiple court orders compelling him to disclose information about his financial affairs with a view to entering into an IPOA.

    The Facts

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Taylor Wessing, High Court of Justice (England & Wales)
    Authors:
    Katherine Hudson
    Location:
    United Kingdom
    Firm:
    Taylor Wessing

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