Category: insolvency

In re MF Global UK Ltd (in special administration) (No 5) – WLR Daily

Posted July 8th, 2014 in financial regulation, insolvency, law reports, trustees in bankruptcy by tracey

In re MF Global UK Ltd (in special administration) (No 5): [2014] EWHC 2222 (Ch); [2014] WLR (D) 294

‘There was nothing in the rules contained in Chapters 7 and 7A of the Client Assets Sourcebook (“CASS 7 and 7A”), which formed part of the Financial Services Authority Handbook, which expressly excluded the statutory power of compromise contained in section 15 of the Trustee Act 1925.’

WLR Daily, 4th July 2014

Source: www.iclr.co.uk

Fibria Celulose S/A v Pan Ocean Co Ltd and another – WLR Daily

Posted July 4th, 2014 in agency, assignment, contracts, foreign jurisdictions, insolvency, law reports by tracey

Fibria Celulose S/A v Pan Ocean Co Ltd and another: Kim v Fibria Celulose S/A: [2014] EWHC 2124 (Ch); [2014] WLR (D) 288

‘The relief available under article 21(1) of the UNCITRAL Model Law on Cross-Border Insolvency, as scheduled to the Cross-Border Insolvency Regulations 2006 (SI 2006/1030), upon recognition by the English court of a foreign insolvency proceeding was limited to such relief as it would be open to the court to grant in domestic insolvency proceedings.’

WLR Daily, 30th June 2014

Source: www.iclr.co.uk

Henderson (Respondent) v Foxworth Investments Limited and another (Appellants) – Supreme Court

Posted July 3rd, 2014 in appeals, hotels, insolvency, law reports, liquidators, Scotland, Supreme Court by sally

Henderson (Respondent) v Foxworth Investments Limited and another (Appellants) [2014] UKSC 41 (YouTube)

Supreme Court, 2nd July 2014

Source: www.youtube.com/user/UKSupremeCourt

Fruit machines and Blue Monkeys: can administrators be personally liable for converting ROT goods? – 11 Stone Buildings

Posted June 26th, 2014 in administrators, gambling, insolvency, news, title to goods by sally

‘Administrators are often faced with a large number of retention of title (“ROT”) claims from suppliers who demand a quick adjudication of their claim, frequently on the back of incomplete evidence, and in the days immediately following an appointment when administrators’ resources are stretched. The recent decision Blue Monkey Gaming Ltd v Hudson & others [2014] EWHC (Ch)provides some useful guidance for both administrators and ROT claimants.’

Full story (PDF)

11 Stone Buildings, June 2014

Source: www.11sb.com

Insolvent defendants and claimants – Thirty Nine Essex Street

Posted June 6th, 2014 in company law, damages, insolvency, limitations, news, personal injuries, winding up by sally

‘Corporate bodies (limited companies or LLPs) have a separate legal identity that ceases to exist upon dissolution. Dissolution can occur, broadly speaking, in two ways, one is at the end of the process of winding up (whether voluntary or compulsory) and the other is by the process of striking off the Register of Companies or limited liability partnerships. The latter occurs either as a result of the company’s or LLP’s failure to file accounts, returns etc. or by a process of voluntary striking off.’

Full story (PDF)

Thirty Nine Essex Street, 7th March 2014

Source: www.39essex.com

In re Lehman Brothers (International) (Europe) (in administration) (No 5) – WLR Daily

Posted May 29th, 2014 in banking, case management, civil procedure rules, insolvency, law reports, sanctions, time limits by michael

In re Lehman Brothers (International) (Europe) (in administration) (No 5); Contrarian Funds LLC v Lomas and others [2014] EWHC 1687 (Ch);  [2014] WLR (D)  233

‘Approach of court to applications for extensions of time under the Insolvency Rules 1986 in light of the reformulation of CPR r 3.9 and the test to be applied on an application for relief from sanctions.’

WLR Daily, 23rd May 2014

Source: www.iclr.co.uk

Buying businesses and assets from an administrator ~ Guidelines for the unwary – 11 Stone Buildings

Posted May 12th, 2014 in administrators, employment, insolvency, news, sale of goods by sally

‘Purchasing businesses and assets from an administrator can be tempting at an attractive price but there are lots of traps for the unwary. In this Insider, Tom Shepherd focuses on three key areas to consider when there is a sale of a business out of administration. First, he lists the types of sale that an administrator is likely to be involved in, including the much talked about pre-pack. Then he outlines the different types of due diligence a purchaser might want to think about when he is buying assets from an administrator. Last but not least, he considers the position of employees in that situation.’

Full story (PDF)

11 Stone Buildings, May 2014

Source: www.11sb.com

Is a limited recourse agreement no longer an effective weapon against winding-up? – 11 Stone Buildings

Posted March 26th, 2014 in consumer credit, EC law, insolvency, news, winding up by sally

‘This article questions the decision in ARM Asset-Backed Securities S.A. [2013] EWHC 3351 CH which found that a company was insolvent despite a contractual limited recourse provision which provided that the company was not liable to pay its bondholders more than its available funds.’

Full story

11 Stone Buildings, February 2014

Source: www.11sb.com

In re Lehman Brothers International (Europe) (in administration) (No 4) – WLR Daily

Posted March 18th, 2014 in banking, insolvency, law reports by tracey

In re Lehman Brothers International (Europe) (in administration) (No 4):[2014] EWHC 704 (Ch);  [2014] WLR (D)  132

‘Determination of issues raised in the administration of three companies as to the potential liability of two members in the group for the liabilities of the principal trading company, an unlimited company, and in particular its subordinated liabilities, and the relationship between their liability, if any, as members and their claims as creditors.’

WLR Daily, 14th March 2014

Source: www.iclr.co.uk

“Game, set but not quite match” following the C of A decision re rents in administration – 11 Stone Buildings

Posted March 10th, 2014 in administrators, expenses, insolvency, leases, news, rent by sally

‘Many commercial landlords will be delighted with the Court of Appeal’s unanimous decision in Jervis v Pillar Denton Limited (Game Station) and Others [2014] EWCA Civ 180, overruling the decisions in Goldacre and Luminar. The Court of Appeal held that, applying the Lundy Granite principle, the question of whether quarterly rent due under a lease was an administration expense or a provable debt depended not on whether the rent fell due during the period of the administration, but whether the property had been used for the benefit of the administration. Sarah Clarke gives the background to these cases, sets out the Game appeal decision and highlights its consequences as well as the real concerns for officeholders.’

Full story

11 Stone Buildings, February 2014

Source: www.11sb.com

Jervis and others v Pillar Denton Ltd (Game Station) and others – WLR Daily

Posted February 28th, 2014 in administrators, expenses, insolvency, law reports, rent by sally

Jervis and others v Pillar Denton Ltd (Game Station) and others [2014] EWCA Civ 180 ; [2014] WLR (D) 94

‘In the context of insolvency, where rent was payable in advance the office holder should make payments at the rate of the rent for the duration of any period during which he retained possession of the demised property for the benefit of the winding up or administration. The rent would be treated as accruing from day to day. Those payments were payable as expenses of the winding up or administration. The duration of the period was a question of fact and was not determined merely by reference to which rent days occurred before, during or after that period.’

WLR Daily, 24th February 2014

Source: www.iclr.co.uk

Marks & Spencer plc v Revenue and Customs Commissioners (No 2) – WLR Daily

Posted February 28th, 2014 in corporation tax, EC law, insolvency, law reports, subsidiary companies by sally

Marks & Spencer plc v Revenue and Customs Commissioners (No 2) [2014] UKSC 11; [2014] WLR (D) 90

‘A company was entitled to make successive claims to cross-border group relief against corporation tax in relation to the same loss incurred in the same accounting period by a European subsidiary which had gone into liquidation and then to withdraw any earlier claims in respect of the same surrendered loss which did not meet the subsequent judicially determined test, subject to the claim ultimately relied upon not being statute-barred.’

WLR Daily, 19th February 2014

Source: www.iclr.co.uk

Landlords win legal battle over Game – Daily Telegraph

Posted February 25th, 2014 in appeals, insolvency, landlord & tenant, news, rent by sally

‘Court of Appeal ruling gives high street landlords more protection in administrations’

Full story

Daily Telegraph, 24th February 2014

Source: www.telegraph.co.uk

Insolvency practitioners to be prevented from charging by the hour under new proposals – OUT-LAW.com

Posted February 19th, 2014 in administrators, consultations, consumer protection, disciplinary procedures, fees, fines, insolvency, news by sally

‘Administrators and other insolvency practitioners (IPs) could be prevented from charging an hourly rate for their services and could instead have to base their fees on a percentage of property dealt with under plans put forward for consultation by the Government.’

Full story

OUT-LAW.com, 19th February 2014

Source: www.out-law.com

Mind your step – New Law Journal

Posted February 6th, 2014 in insolvency, insurance, law firms, legal services, news, solicitors by sally

‘Simon Love provides a warning to firms facing financial difficulty.’

Full story

New Law Journal, 5th February 2014

Source: www.newlawjournal.co.uk

Guarantor was released from obligations when alterations to property were made without its consent, Appeal Court confirms – OUT-LAW.com

Posted January 24th, 2014 in insolvency, landlord & tenant, leases, news, rent, surety by sally

‘The guarantor of an insolvent commercial tenant cannot be held liable for outstanding obligations if changes were made to the lease without its consent which had the “potential” to increase the burden on the guarantor, the Court of Appeal has confirmed.’

Full story

OUT-LAW.com, 23rd January 2014

Source: www.out-law.com

Schmid v Hertel – WLR Daily

Posted January 20th, 2014 in assets recovery, EC law, insolvency, jurisdiction, law reports by sally

Schmid v Hertel (Case C-328/12); [2014] WLR (D) 5

‘Under article 3(1) of Council Regulation (EC) No 1346/2000 of 29 May 2000 on insolvency proceedings, the courts of the member state within the territory of which insolvency proceedings had been opened had jurisdiction to hear and determine an action to set a transaction aside by virtue of insolvency that was brought against a person whose place of residence was not within the territory of a member state.’

WLR Daily, 16th January 2014

Source: www.iclr.co.uk

Corporate failure and its implications for professionals advising before insolvency – 11 Stone Buildings

Posted December 12th, 2013 in accountants, insolvency, negligence, news, professional conduct, solicitors by sally

‘Professional negligence cases frequently deal with claims that arise after an insolvency occurs. During a recent 11 SB insolvency seminar, Lexa Hilliard QC focused on problems that can arise for accountants and solicitors prior to a company entering into a formal insolvency process. This is an area that has attracted little attention but it can be full of pitfalls that we professionals ignore at our peril. In
this ‘Insider’ she summarises herthoughts on what is becoming a very topical issue.’

Full story

11 Stone Buildings, December 2013

Source: www.11sb.com

Gomes Viana Novo and others v Fundo de Garantia Salarial IP (Wage Guarantee Fund) – WLR Daily

Posted December 4th, 2013 in EC law, employment, enforcement, insolvency, law reports, remuneration by sally

Gomes Viana Novo and others v Fundo de Garantia Salarial IP (Wage Guarantee Fund) (Case C‑309/12); [2013] WLR (D) 465

‘Council Directive 80/987/EEC of 20 October 1980 relating to the protection of employees in the event of the insolvency of their employer (as amended by Parliament and Council Directive 2002/74/EC of 23 September 2002) did not preclude national legislation which did not guarantee wage claims falling due more than six months before the commencement of an action seeking a declaration that the employer was insolvent, even where the workers initiated, prior to the start of that period, legal proceedings against their employer with a view to obtaining a determination of the amount of those claims and an enforcement order to recover those sums.’

WLR Daily, 28th November 2013

Source: www.iclr.co.uk

Court of Appeal clarifies “lawsuits pending” in Art 32 of EC Directive 2001/24 on Reorganisation and Winding Up of Credit Institutions – 11 Stone Buildings

Posted December 3rd, 2013 in appeals, EC law, foreign jurisdictions, insolvency, news, winding up by sally

‘In a judgment handed down today (Isis Investments Ltd v Kaupthing Bank h.f. & Elfar Adalsteinsson [2013] EWCA Civ 1493), the Court of Appeal has clarified the meaning and scope of “lawsuits pending” in Article 32 of the EC Directive on the Reorganisation and Winding Up of Credit Institutions (Directive 2001/24/EC). Charles Samek QC who acted for the successful respondent, Mr Adalsteinsson (acting as a representative party on behalf of high net-worth investors) explains the significance of the judgment.’

Full story

11 Stone Buildings, 27th November 2013

Source: www.11sb.com