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    Restructuring and insolvency update: BTI 2014 LLC v Sequana SA & others [2016] EWHC 1686
    2016-11-08

    The Claim

    Arjo Wiggins Appleton Limited (“AWA Limited”) was a wholly owned subsidiary of Sequana SA (the “Defendant”). BAT Industries Plc (“BAT Plc”), through a series of corporate acquisitions, became liable to pay for part of an environmental clean-up operation in the USA. AWA Limited was also liable to indemnify BAT Plc for part of that liability.

    In December 2008, AWA Limited’s directors signed a solvency statement confirming that, in the opinion of the directors;

    Filed under:
    United Kingdom, Company & Commercial, Insolvency & Restructuring, Litigation, Rosling King LLP, Companies Act 2006 (UK)
    Authors:
    James Walton
    Location:
    United Kingdom
    Firm:
    Rosling King LLP
    High Court considers validity and timing of contractual notices in close-out procedures
    2016-11-08

    Introduction

    In Lehman Brothers International (Europe) (in Administration) v Exxonmobil Financial Services BV(1) the High Court considered a range of issues arising from the application of the close-out provisions of the standard-form Global Master Repurchase Agreement (GMRA) 2000.

    Filed under:
    United Kingdom, Banking, Capital Markets, Insolvency & Restructuring, Litigation, RPC, Security (finance), JPMorgan Chase, ExxonMobil, Lehman Brothers, High Court of Justice (England & Wales)
    Authors:
    Jake Hardy
    Location:
    United Kingdom
    Firm:
    RPC
    English High Court places US company into Administration
    2016-10-31

    On 7 October 2016 Ashfords' Restructuring and Insolvency Team, led by partner Alan Bennett, assisted the directors in securing an Administration order in respect of Ronin Development Corporation (the "Company").

    The Company was incorporated in Princeton, New Jersey, in October 1986 under the New Jersey Business Corporation Act, and is a global marketing, consulting and research company.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Ashfords LLP
    Authors:
    Alan Bennett , Rachel Maddocks
    Location:
    United Kingdom
    Firm:
    Ashfords LLP
    Finance litigation briefing October 2016: report and review on the latest cases and issues
    2016-10-31

    Gowling WLG's finance litigation experts bring you the latest on the cases and issues affecting the lending industry.

    Uncrystallised pension pot remains protected following bankruptcy

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, White Collar Crime, Gowling WLG, Bankruptcy, Fraud, Abuse of process, Solicitor, Res judicata and issue estoppel, Debt, Legal burden of proof, Witness, Initial public offerings, Insolvency Act 1986 (UK), Pensions Act 1995 (UK), Trustee, Court of Appeal of England & Wales
    Authors:
    Greg Standing , Ian Weatherall
    Location:
    United Kingdom
    Firm:
    Gowling WLG
    Bailey and another v Angrove's Pty [2016] UKSC 47
    2016-10-28

    Facts

    Angove’s PTY Ltd (‘Angove’s’) is an Australian winemaker which for many years had employed D&D Wines International Ltd (‘D&D’) to distribute its products to retailers. In addition, D&D also purchased wine for itself direct from Angove’s. Their business relationship was governed by an Agency and Distribution Agreement (‘ADA’) entered in December 2011. Amongst its provisions, the ADA entitled the parties to terminate the agreement with immediate effect upon either becoming insolvent.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Gatehouse Chambers
    Authors:
    Michael Levenstein
    Location:
    United Kingdom
    Firm:
    Gatehouse Chambers
    Patel v Mirza [2016] UKSC 42
    2016-10-28

    Facts

    Mr Patel transferred Mr Mirza £620,000 to bet on shares in RBS using insider information which Mr Mirza hoped to obtain from RBS contacts. The inside information did not come through and Mr Mirza refused to return the sums to Mr Patel. Mr Patel subsequently sued Mr Mirza for recovery of the £620,000 on the
    basis of unjust enrichment. 

    Filed under:
    United Kingdom, Capital Markets, Insolvency & Restructuring, Litigation, White Collar Crime, Gatehouse Chambers, Insider trading, Unjust enrichment
    Authors:
    Cameron Stocks
    Location:
    United Kingdom
    Firm:
    Gatehouse Chambers
    Rowntree Ventures Ltd v Oak Property Partners Ltd [2016] EWHC 1523 (Ch)
    2016-10-28

    Facts

    This case related to the leasehold ownership of hotel rooms. The applicants were the leaseholders of the hotel rooms and the respondent companies the lessors.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Leisure & Tourism, Litigation, Real Estate, Gatehouse Chambers
    Authors:
    Jonathan Titmuss
    Location:
    United Kingdom
    Firm:
    Gatehouse Chambers
    Cooke v Dunbar Assets [2016] EWHC 1888
    2016-10-28

    Facts

    C’s appeal of his bankruptcy order failed. He then argued that pursuant to r 12.2(1) of the Insolvency Rules 1986 (‘IR 12.2’) as a matter of law the costs of the unsuccessful appeal should be treated as an expense of the bankruptcy estate; alternatively they were aprovable debt in the bankruptcy. D (the PC) contended that IR 7.51A gave the court an unfettered discretion as to the form of order and sought costs against C personally as a post-bankruptcy liability.

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Gatehouse Chambers, High Court of Justice (England & Wales)
    Authors:
    Harriet Ter-Berg
    Location:
    United Kingdom
    Firm:
    Gatehouse Chambers
    Constructive trusts: will the English court "create" new property rights?
    2016-10-28

    The English courts have been careful to control the circumstances in which a constructive trust will be declared.

    Introduction

    Filed under:
    United Kingdom, Insolvency & Restructuring, Litigation, Addleshaw Goddard LLP, Beneficial ownership, Constructive trust
    Authors:
    Duncan Henderson
    Location:
    United Kingdom
    Firm:
    Addleshaw Goddard LLP
    Directors’ Duties in the UK (England and Wales)
    2016-10-31

    A director who breaches the obligations and duties imposed on him by his office may be liable to compensate the company for breach of duty, may incur personal liability for the company’s debts, may also face criminal or civil penalties and may be disqualified from acting as a director. The position of the company director has never been the subject of more scrutiny than it is today.

    Filed under:
    United Kingdom, Employment & Labor, Insolvency & Restructuring, IT & Data Protection, White Collar Crime, Reed Smith LLP, Security (finance), Board of directors, Debt, Insider trading, Insolvency Act 1986 (UK)
    Authors:
    Kathryn Bond , Emily McMahan , Edward Miller
    Location:
    United Kingdom
    Firm:
    Reed Smith LLP

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