It is well established that the type of recognition granted by the recognising court under the UNCITRAL Model Law will depend on whether the originating proceedings are ‘foreign main’ or ‘foreign non-main’ proceedings, which in turn hinges on the centre of main interests (COMI) of the insolvent entity. In a ground-breaking case, the English court … Continue Reading
Following consultations on insolvency and corporate governance in 2017 and 2018, the Government recently published its response setting out some notable proposed changes to the existing insolvency and corporate governance legislation. Following the high profile failures of Carillion and BHS, the Government’s response is largely aimed at encouraging the recovery of viable companies, improving transparency … Continue Reading
These are just a few of the big high street names which have sought to compromise their obligations to creditors in recent months via a company voluntary arrangement (CVA). CVAs are designed as a flexible method by which companies can seek to contractually alter their position regarding different creditors – each CVA will be different, … Continue Reading
The Recast Insolvency Regulation (Regulation 2015/848) (“Recast Regulation”) will apply to all member states of the EU (with the exception of Denmark) in relation to insolvency proceedings opened on or after 26 June 2017. The Recast Regulation takes a similar approach to that of the prior EU Insolvency Regulation (Regulation 1346/2000), which came into force … Continue Reading
On 6 April 2017, together with the new Insolvency Rules (England and Wales) 2016, the Investment Bank (Amendment of Definition) and Special Administration (Amendment) Regulations 2017 (the “Regulations”) will come into force. These regulations follow an independent review of the special administration regime, undertaken by Peter Bloxham during 2013, assessing the success of the special … Continue Reading
Case law on wrongful trading has developed significantly over the past two years, with the cases of Ralls Builders and Brooks increasing judicial consideration of the conduct of directors in the period preceding an insolvency. The judgment of the appeal and cross-appeal in Brooks was handed down in late 2016. It provides an essential update … Continue Reading
Restructuring lawyers and distressed companies alike were granted welcome relief by the US Second Circuit Court of Appeals when it overturned the decision of the District Court in the case of Marblegate Asset Management, LLC v Education Management Finance Corp.[1] In 2014, Education Management Finance Corp. (“EDMC”) sought to restructure its debts outside of a … Continue Reading
In a watershed decision concerning the scope of maritime liens under the U.S. Commercial Instruments and Maritime Lien Act (“CIMLA”), the District Court for the Southern District of New York recently held that OW Bunker entities did not have valid maritime liens for the supply of bunkers to vessels. In the first decision by a … Continue Reading
Following on from our recent blog post on Ralls Builders Limited (in liquidation) [2016] EWHC 243 (Ch), in which Mr Justice Snowdon discussed the issues around wrongful trading under section 214 of the Insolvency Act 1986 and the quantum of liability that may be placed on directors who continue to trade when they knew, or … Continue Reading
In February 2016, Mr Justice Snowden handed down his judgment in the High Court proceedings concerning Ralls Builders Limited (in liquidation) [2016] EWHC 243 (Ch). This matter concerned an application by the liquidators of Ralls Builders Limited (in liquidation) (the company) for a declaration regarding the alleged wrongful trading of the company by its directors, … Continue Reading
OGX Petroleo E Gas S.A., Re [2016] EWHC 25 (Ch) In a recent judgment, Mr Justice Snowden sounded a cautionary note for applicants seeking recognition of a foreign insolvency proceeding under the UNCITRAL Model Law, advising applicants to make full and frank disclosure to the court in relation to the effect that such recognition might … Continue Reading
This appeal arose out of the litigation fallout from the Bernard Madoff Ponzi scheme. In the appeal, the Privy Council considered whether, at common law, an agreement to submit to jurisdiction must be express or whether it could be implied or inferred. The Board of the Privy Council found that an agreement to submit to … Continue Reading
In our increasingly global world, cross-border insolvencies have become relatively commonplace. Lehman Brothers and Nortel Networks are just two of the matters where parallel proceedings in multiple jurisdictions were necessary in order to effectively administer the debtors’ estates. Neither the Regulation nor the Model Law seek to address or harmonise the substantive differences among insolvency … Continue Reading
In this article, Anker Sorensen, a partner of the Financial Industry Group of the Paris office of Reed Smith LLP, practicing predominantly in the area of corporate and restructuring, shortly describes and comments the main changes which have been introduced by the “Macron law” in the insolvency/corporate restructuring area, i.e.: the specialization of commercial courts … Continue Reading
In this article, Anker Sorensen, a senior partner of the Financial Industry Group of Reed Smith in Paris, practicing predominantly in the area of Corporate and Restructuring, discusses two recent decisions rendered by the Commercial chamber of the French Supreme Court. One of the decisions seems to set a standard for the lower courts when … Continue Reading
On 7 November 2014, OW Bunker A/S (“OW”), a global supplier and trader of marine fuel, filed for bankruptcy in Denmark. Further bankruptcies of OW subsidiaries and affiliates swiftly followed, including the bankruptcy of certain U.S. and Singapore-based OW entities. Protective interpleader proceedings were brought in the U.S. and Singapore by vessel owners and charterers who … Continue Reading
While it is clear that chapter 11 of the U.S. Bankruptcy Code can be an effective tool of reorganisation for distressed foreign shipping companies that are locked in an adversarial dispute with their creditors, should an English scheme of arrangement be considered as an alternative to a U.S. bankruptcy case for shipping companies that are … Continue Reading
We published a client alert in March, confirming that the Small Business, Enterprise and Employment Act 2015 (the “Act”) received Royal Assent on 26 March 2015 and summarising the provisions which will amend insolvency legislation. The provisions of the Act will come into force in stages over the next year, but a number of provisions, including … Continue Reading
As a reaction to the dramatic oil price volatility, many energy companies plan to streamline operations by reducing work force and shedding assets. Those who do so face tightening credit and decline in asset value that may impact the solvency of the business enterprise. Energy companies must maintain operations where possible to preserve value and … Continue Reading
Reed Smith’s global Commercial Restructuring & Bankruptcy team have recently published the February Edition of their quarterly newsletter. The newsletter provides a detailed review of some of the most important legal developments in the sector. The February issue includes the following: Minority Holders Gain Leverage Through Recent Interpretation of Trust Indenture Act New Jersey Joins Number … Continue Reading
Oil price movement through 2014 and into 2015 is a consequence of market fundamentals. Europe’s continued economic woes, paired with the slowdown in China’s economy, have led to a fall in demand for oil. At the same time, the growing U.S. shale-oil boom (over which OPEC has no control) and the pick-up in drilling in … Continue Reading
In this article, the author Anker Sorensen, a senior partner of the Financial Industry Group of Reed Smith Paris, practising predominantly in the area of Corporate and Restructuring, sets out various recent labor related reforms applicable in France in 2014 and discusses recent court decisions, which may deter investors, and particularly foreign investors, instead of … Continue Reading
Singularis Holdings Limited v PricewaterhouseCoopers [2014] UKPC 36 PricewaterhouseCoopers v Saad Investments Company Limited [2014] UKPC 35 The Privy Council gives credence to the concept of “modified universalism” (being the court’s common law power to assist foreign winding up proceedings) and notes some of the circumstances which would permit a “stranger” to a winding up … Continue Reading
Reed Smith’s global Commercial Restructuring & Bankruptcy team have recently published the October Edition of their quarterly newsletter. The newsletter provides a detailed review of some of the most important legal developments in the sector. The October edition covers diverse areas from the use of schemes of arrangements in England to attorney-client privilege issues in … Continue Reading
