James Wilson discusses the Temporary Insolvency Practice Direction 2020 (“TIPD”) – Park Square Barristers

‘On 6th April 2020 the TIPD came into force. It implements a number of changes and supplements to the Practice Direction – Insolvency Proceedings July 2018. The purpose is to avoid, where possible, parties attending court in person and the likely disruption in proceedings as a result of the COVID-19 pandemic.’

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Park Square Barristers, 8th April 2020

Source: www.parksquarebarristers.co.uk

A guide to the future ahead for TUPE and insolvency – Littleton Chambers

‘On Easter Monday, 13 April 2020, the High Court (Snowden J presiding) handed down its judgment in the matter of Carluccio’s Limited (in administration) [2020] EWHC 886 (Ch). To add to the Easter joy, the furlough guidance was amended on 9 April 2020 and the judgment had to embrace the amended guidance. One of the clarifying amendments on 9 April was the confirmation that employees who transfer under TUPE after 28 February 2020 may be placed, or continue, on furlough. This has practical implications in the light of this judgment.’

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Littleton Chambers, 14th April 2020

Source: www.littletonchambers.com

Carluccio’s Limited (in administration): Administration and furlough arrangements with employees – Exchange Chambers

‘Snowden J gives urgently sought directions to administrators in respect of furlough arrangements with employees following a remote video hearing in the matter of Carluccio’s Limited (in administration) [2020] EWHC 886 (Ch).’

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Exchange Chambers, 15th April 2020

Source: www.exchangechambers.co.uk

High Court rejects attempt to adjourn £250m trial because of virus – Litigation Futures

‘The High Court has rejected an application to adjourn a five-week trial of a £250m insolvency claim because of the coronavirus pandemic.’

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Litigation Futures, 9th April 2020

Source: www.litigationfutures.com

Directors disqualified after abandoning care homes, diverting council funds – Local Government Lawyer

‘The directors of two care homes in the Midlands have been disqualified after they diverted council funds before abandoning elderly residents and staff, the Insolvency Services has revealed.’

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Local Government Lawyer, 31st March 2020

Source: www.localgovernmentlawyer.co.uk

Further Lessons from Lehman Bros: The Court’s Control of Office Holders – Hardwicke Chambers

Posted March 20th, 2020 in administrators, appeals, banking, chambers articles, coronavirus, debts, insolvency, news by sally

‘When major financial institutions go to the wall the ensuing legal squabbles over the carcases often provide rich seams that can be mined to provide judicial clarification of the law for the benefit of all. The spectacular collapse of the Lehman Brothers empire is no exception and the latest chapter does not disappoint. In Lehman Brothers Australia Ltd (In Liquidation) v Macnamara & Ors (Joint Administrators of Lehman Brothers International (Europe) (In Administration)) [2020] EWCA Civ 321, the Court of Appeal (Patten, David Richards, Newey LJJ) has provided some timely and useful clarification on the correct test for the court to apply when considering the exercise of its inherent jurisdiction to control its officers within the principle of Re Cordon, Ex p. James (1873-74) LR 9 Ch App 609 or through the more specifically targeted statutory provisions for such control, as for example those in para 74 of Schedule B1 to the Insolvency Act 1986 (IA 1986) with regard to administrators. In the present climate induced by Coronavirus (COVID-19), any clarity that makes the necessity of going to court less likely is to be doubly welcomed.’

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Hardwicke Chambers, 17th March 2020

Source: hardwicke.co.uk

Case highlights need for certainty in out of hours administration appointments – OUT-LAW.com

‘The High Court ruled that it is not permissible for a notice of appointment of administrators by the directors of a company to be e-filed out of court hours. The court ruled that the defect was curable and that the appointment took effect at the time the court opened for business the next working day. This judgment adds to the growing number of conflicting cases about the validity and time of the appointment when notices are e-filed out of hours.

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OUT-LAW.com, 6th March 2020

Source: www.pinsentmasons.com

Developments since Keyworker Homes – Exchange Chambers

Posted February 26th, 2020 in administrators, chambers articles, electronic filing, insolvency, news by sally

‘In a judgment which disagreed with the recently reported decisions of Re Skeggs Beef Limited[2019] EWHC 2607 (Ch) and Re SJ Henderson and Co Ltd [2019] EWHC 2742 (Ch), HHJ Hodge QC sitting as a Judge of the High Court found:

1) Notices of Intention to Appoint Administrators (“NOI”) can be filed at any time via e-filing and take effect at the time they are filed via e-filing.
2) Directors or the Company can make out of hours appointments of Administrators by filing a Notice of Appointment (“NOA”) at any time via e-filing. The appointment will take effect at the time the documents are filed via e-filing.
3) That for the purposes of the computation of the period of 10 business days pursuant to para 28(2) of Sch.B1 of the Insolvency Act 1986, the first business day will be the business day after the date on which the NOI was filed – thus it is a ‘clear days’ calculation.’

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Exchange Chambers, 20th February 2020

Source: www.exchangechambers.co.uk

In the matter of Comet Group Limited (in Liquidation) [2018] EWHC 1378 (Ch) – Wilberforce Chambers

Posted February 11th, 2020 in administrators, disciplinary procedures, liquidators, news by sally

‘This judgment is an important one. It concerned an application by the joint liquidators of Comet (formerly joint administrators) for directions permitting them not to carry out any further investigation into the validity of the fixed and floating charge held by a single purpose vehicle (“HAL”) that had been granted by Comet under a year before it collapsed into administration. The joint liquidators also sought a direction that they be permitted to transfer a further tranche of funds to HAL that had been realised in the administration.’

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Wilberforce Chambers, 5th February 2020

Source: www.wilberforce.co.uk

Out-of-hours Administration Appointments: The SAGA continues – Guildhall Chambers

Posted December 10th, 2019 in administrators, insolvency, news, notification, service by sally

‘It is now more than 17 years since the Enterprise Act 2002 was enacted with the laudable aim of streamlining the administration procedure, resulting in the introduction of the out-of-court administration regime set out in Schedule B1 to the Insolvency Act 1986 (“the Act”).’

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Guildhall Chambers, 2nd December 2019

Source: www.guildhallchambers.co.uk

Pending Winding Up Petition and Company entering Administration – 33 Bedford Row

Posted November 28th, 2019 in administrators, news, winding up by sally

‘Where a winding up petition is pending against a company, the company is able to enter into administration under Schedule B1 of the Insolvency Act 1986 (‘Schedule B1’), either through the court making an administration order in respect to the company, or through an appointment under paragraph 14 to Schedule B1 (where no provisional liquidator has been appointed and no administrative receiver is in office). When the company does enter administration, the pending winding up petition is affected.’

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33 Bedford Row, 4th November 2019

Source: www.33bedfordrow.co.uk

Samuel Parsons considers the recent decision of ICC Judge Barber in Re London Bridge Entertainment Partners LLP (in administration) – Guildhall Chambers

Posted November 26th, 2019 in administrators, deposits, expenses, news, rent by sally

‘Insolvency and Companies Court (ICC) Judge Barber held that the Lundy Granite principle does not extend to an obligation to ‘top up’ a rent deposit fund, where sums had been withdrawn from the fund to pay rent. Re London Bridge Entertainment Partners shows how seemingly immaterial business decisions made when an entity is solvent will be thrown into relief when the same entity becomes insolvent. Here, the decision to ‘pay first, ask questions later’ from the deposit fund meant that the landlord effectively lost its priority ranking in respect of those rent payments; a priority it could otherwise have been entitled to. The case also demonstrates that the ambit of provable debts will continue to be construed broadly, while the category of administration expenses will be narrowly construed. Written by Samuel Parsons, barrister at Guildhall Chambers.’

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Guildhall Chambers, 22nd November 2019

Source: www.guildhallchambers.co.uk

A Summary Of Recent Corporate Insolvency Cases – Hardwicke Chambers

‘Phillip Patterson provides a summary of recent corporate insolvency cases covering:

– Fraudulent trading;
– Misfeasance, transactions defrauding creditors and the duties of directors; and
– The out of court appointment of administrators.’

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Hardwicke Chambers, 9th October 2019

Source: hardwicke.co.uk

Wonga customers’ average compensation payout may be just £118 – The Guardian

Posted October 9th, 2019 in administrators, compensation, complaints, debts, interest, loans, news, statistics by sally

‘Customers who were mis-sold loans by the collapsed payday lender Wonga are expected to receive less than 10% of what they are owed in compensation after administrators revealed that only £41m will be put aside for claimants.’

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The Guardian, 9th October 2019

Source: www.theguardian.com

High Court allows more time for steelworker claims – Litigation Futures

‘The High Court has given the personal representatives of deceased steelworkers more time to register their compensation claims under a group litigation order (GLO).’

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Litigation Futures, 7th February 2019

Source: www.litigationfutures.com

Liquidators can use, but not enforce, adjudication in construction contracts – OUT-LAW.com

‘Companies in liquidation can theoretically refer claims to an adjudicator under construction law but it would be a futile exercise as the decision could not be enforced in most cases, the Court of Appeal in England has ruled.’

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OUT-LAW.com, 4th February 2019

Source: www.out-law.com

Does Cannon v Primus mean an end to general jurisdictional reservations? – Practical Law: Construction Blog

‘It was only published at the end of last week, so I’m not sure if you’ve had chance to look at Coulson LJ’s judgment in Bresco Electrical Services Ltd v Michael J Lonsdale (Electrical) Ltd, Cannon Corporate Ltd v Primus Build Ltd. If not, then you should. It contains some important stuff about liquidation and CVAs, and when it is appropriate (and possible) to adjudicate if the referring party is subject to one of those processes.’

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Practical Law: Construction Blog, 30th January 2019

Source: constructionblog.practicallaw.com

High Court: administrator appointment can be simultaneous with court notice – OUT-LAW.com

Posted November 12th, 2018 in administrators, insolvency, news, notification, time limits by tracey

‘The High Court in England has confirmed that the industry standard wording used in the notice of appointment does not invalidate the appointment of the administrators. The same practice had previously been called into question in a case involving NJM Clothing.’

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OUT-LAW.com, 12th November 2018

Source: www.out-law.com

Treat Insolvency Rules as ‘a complete code’ for payment of statutory interest, rules Court of Appeal – OUT-LAW.com

‘The Court of Appeal has determined the extent of creditors’ entitlements to statutory interest on their debts and the correct approach for calculating their entitlement. It has ruled on the entitlement of representative creditors of Lehman Brothers International (Europe) (LBIE) to the surplus funds and on the calculation of the statutory interest due to them.’

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OUT-LAW.com, 10th November 2017

Source: www.out-law.com

Aspects of burial law from Brady’s funeral judgment – Law & Religion UK

‘On 13 October, the High Court handed down the judgment Oldham Metropolitan Borough Council & Ors v Robin Makin & Ors [2017] EWHC Case No: HC-2017-002064 (Ch) concerning the arrangements for the disposal of the body of Ian Stewart-Brady, formerly Ian Brady (the “deceased”), one of the infamous Moors murderers. We posted some initial comments based upon the Court’s judgment and the Summary which it produced “to assist in understanding the Court’s decision”.’

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Law & Religion UK, 8th November 2017

Source: www.lawandreligionuk.com