Category: insolvency

‘Breathing space’: the impact of a more consensual approach – 3 Hare Court

Posted July 8th, 2020 in chambers articles, company law, contracts, coronavirus, insolvency, news, pre-action conduct by sally

‘On 27 April 2020 the British Institute of International and Comparative Law (BIICL) published Breathing Space – a Concept Note on the effect of the pandemic on commercial contracts. The central thesis is that to mitigate the damaging effects of COVID-19 on the global economy, private law should encourage compromise and mediation rather than a zero-sum rush to terminate contracts and then to litigation and arbitration.

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3 Hare Court, 29th June 2020

Source: www.3harecourt.com

Case Comment: Bresco Electrical Services Ltd (in liquidation) v Michael J Lonsdale (Electrical) Ltd [2020] UKSC 25 – UKSC Blog

Posted July 3rd, 2020 in appeals, company law, insolvency, news, Supreme Court by sally

‘In this case comment, Adrian Bell, Nigel Lewis, Steven Bell and Shona Frame, all partners within the CMS Infrastructure, Construction and Energy Disputes Group, comment on the decision handed down in June 2020 in the matter of Bresco Electrical Services Ltd (in liquidation) v Michael J Lonsdale (Electrical) Ltd [2020] UKSC 25.’

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UKSC Blog, 1st July 2020

Source: ukscblog.com

Insolvent Companies and Adjudication: Bresco Services Limited v Michael J Lonsdale [2020] UKSC 25 – Hardwicke Chambers

Posted July 1st, 2020 in appeals, chambers articles, company law, contracts, damages, debts, dispute resolution, insolvency, jurisdiction, news, Supreme Court by sally

‘Adjudication is a quick and comparatively cheap method of dispute resolution and for those reasons is attractive to insolvent companies seeking to recover debts. However, a respondent was likely to be able to restrain the insolvent company from referring the matter to adjudication on the basis that it would be futile to do so, since any positive decision was unlikely to be enforced as a result of the very fact of the company’s insolvency. Therefore, any award lacked practical utility. Following the decision of the Supreme Court in Bresco v Lonsdale, that is no longer the case.’

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Hardwicke Chambers, 17th June 2020

Source: hardwicke.co.uk

New Acts – legislation.gov.uk

Posted June 30th, 2020 in divorce, insolvency, legislation, sport by tracey

Divorce, Dissolution and Separation Act 2020

Birmingham Commonwealth Games Act 2020

Corporate Insolvency and Governance Act 2020

Source: www.legislation.gov.uk

A double victory for members of schemes in the PPF – Wilberforce Chamber

Posted June 26th, 2020 in chambers articles, EC law, employment, insolvency, judicial review, news, pensions by sally

‘The judgment of Mr Justice Lewis in Hughes and others v Board of the Pension Protection Fund [2020] EWHC 1598 (Admin), handed down on 22 June 2020, is of considerable importance for members of defined benefit schemes of insolvent employers. Thomas Seymour along with a counsel team from Blackstone Chambers (Tom de la Mare QC and Iain Steele), instructed by Farrers, acted for the British Airline Pilots Association (BALPA) representing pilots who were members of the Monarch and BMI Schemes, who brought proceedings for judicial review along with the claimants of other schemes. The proceedings, brought against the Pension Protection Fund (“PPF”) with the Department of Work and Pensions (“DWP”) as an interested party, were heard at a five-day remote hearing in the Administrative Court in May.’

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Wilberforce Chambers, 24th June 2020

Source: www.wilberforce.co.uk

The Supreme Court sanctions the use of adjudication in the insolvency context: Bresco Electrical Services Ltd v Michael J Lonsdale (Electrical) Ltd [2020] UKSC 25 – 3 Hare Court

Posted June 23rd, 2020 in construction industry, contracts, dispute resolution, insolvency, news, set-off by sally

‘The Supreme Court has given judgment in what is being hailed as a landmark case in the construction and insolvency spheres. The decision has not only eliminated any doubt that there is jurisdiction for an insolvent company to adjudicate against a respondent with a potential cross-claim, but it has also endorsed the use of adjudication as a helpful tool for liquidators.’

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3 Hare Court, 22nd June 2020

Source: www.3harecourt.com

Bresco Electrical Services Ltd (in liquidation) v Michael J Lonsdale (Electrical) Ltd [2020] USC 25, or ‘‘kicking the door wide open’’ – 3PB

Posted June 23rd, 2020 in construction industry, contracts, dispute resolution, insolvency, news, set-off by sally

‘Lord Justice Coulson’s judgment included the proposition that an insolvent Company could only adjudicate a dispute with a creditor in circumstances of mutual debts in “exceptional circumstances”. Subsequent caselaw has explored the extent of these “exceptional circumstances”.’

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3PB, 18th June 2020

Source: www.3pb.co.uk

COVID-19 Topics: The Basics of Individual Insolvency – Thomas More Chambers

Posted June 12th, 2020 in bankruptcy, chambers articles, coronavirus, debts, insolvency, news by sally

‘Beyond the medical and physical toll that Covid-19 is taking on sufferers and their families, the economic crisis with lockdown is also expected to lead to a surge in corporate and individual insolvencies. Individuals in particular are likely to be unfamiliar with their options when facing insolvency and with the procedures that aim to balance the twin goals of granting individuals relief from their debt whilst fairly distributing the individual’s assets to creditors.’

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Thomas More Chambers, 29th May 2020

Source: www.thomasmore.co.uk

Insolvency in the English Football League: impact on players and staff – Littleton Chambers

Posted June 11th, 2020 in contract of employment, coronavirus, debts, insolvency, news, remuneration, sport by sally

‘In relation to the EFL, there have been dire warnings that in the absence of a substantially increased contribution from the Premier League, up to 60 clubs could go out of business.’

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Littleton Chambers, 2nd June 2020

Source: littletonchambers.com

Commercial Court dislikes pre-action disclosure in prof neg claims: even in mega-auditor’s negligence action – Hailsham Chambers

Posted June 10th, 2020 in auditors, chambers articles, Commercial Court, disclosure, insolvency, liquidators, negligence, news, pre-action conduct, professional conduct by sally

‘In Carillion v KPMG, the liquidators of this once substantial company sought pre-action disclosure from its former auditors. They intend to bring professional negligence proceedings for not detecting that the financial statements were unreliable. The Commercial Court refused the application. One might think that given auditors’ negligence claims in large part turn on professional judgment as to the audit procedures performed, the evidence obtained and the conclusions drawn, clear sight of the materials produced and relied on by the auditors would enable better focussed pleadings. Nonetheless the Commercial Court refused the application (which had admittedly spun into a substantial hearing with apparently more than £500,000 costs on each side). It pointed out that generally such applications were unlikely to succeed in Commercial Court cases and on the facts was not appropriate. The Judge seems to have been most impressed by the fact that Carillion had been able to articulate a detailed case in negligence already, rendering pre-action disclosure perhaps redundant and likely to be duplicated when it came to conventional disclosure.’

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Hailsham Chambers, June 2020

Source: www.hailshamchambers.com

COVID-19 and Insolvency Law: Key Implications of th – 3 Hare Court

Posted June 4th, 2020 in bills, chambers articles, coronavirus, insolvency, news by sally

‘The COVID-19 pandemic has caused unprecedented disruption to the economy and to businesses, many of whom are now facing significant financial difficulty. The Government presented the Corporate Insolvency and Governance Bill to Parliament on 20 May 2020 (“the Bill”). The Bill includes several provisions designed to guard against a deluge of insolvencies during this period and, if enacted, will operate retrospectively.’

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3 Hare Court, 2nd June 2020

Source: www.3harecourt.com

The New Corporate Insolvency and Governance Bill – A Summary of the Key Provisions – Radcliffe Chambers

Posted June 3rd, 2020 in bills, chambers articles, company law, coronavirus, insolvency, news by sally

‘This summary gives a short overview of the Corporate Insolvency and Governance Bill, which was first read in the House of Commons
on 20 May 2020 and is intended to proceed to the House of Lords following its final stages in the House of Commons on 3 June 2020. This Bill represents the biggest reforms to the UK’s insolvency framework since the Enterprise Act in 2002. The aim is to allow more tools to rescue struggling companies as a going concern and help more businesses weather the COVID-19 storm and avoid entering an insolvency process.’

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Radcliffe Chambers, 26th May 2020

Source: radcliffechambers.com

Commercial Leases & Insolvency – An Overview – Pump Court Chambers

Posted May 29th, 2020 in coronavirus, insolvency, landlord & tenant, leases, news, rent by sally

‘With many businesses large and small struggling to survive or collapsing into administration or liquidation landlords are particularly vulnerable to rent arrears and the difficulty of finding a suitable tenant to replace the existing. The following is an overview of what steps a landlord can take in this uncertain world.’

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Pump Court Chambers, 26th May 2020

Source: www.pumpcourtchambers.com

Ali Tabari reviews key points of the new Corporate Insolvency and Governance Bill, and sets out three key areas for litigators to start preparing for – St Philips Barristers

Posted May 29th, 2020 in bills, coronavirus, insolvency, news by sally

‘Last week saw the first reading in the House of Commons of the Corporate Insolvency and Governance Bill [“CIGB”], which is the Government’s attempt to mitigate the impact of COVID-19 on businesses which should otherwise have been viable. From a parliamentary point of view, it is still at an early stage but, given the importance and urgency of this piece of legislation, it is worth considering some of the key points which arise from a high-level overview, so that you and your clients can try to plan accordingly. Not all of the provisions will survive into the finalised Act, but early Bills are often a good indicator of the overall aims of the legislation. This article does not deal with each and every point to arise from the CIGB, which currently runs to 238 pages including 14 Schedules, but signposts the crucial areas.’

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St Philips Barristers, 25th May 2020

Source: st-philips.com

COVID-19 and Corporate Insolvency – Initial Indications on the Ban on Statutory Demands and Winding Up Petitions – 3 Hare Court

Posted May 27th, 2020 in coronavirus, insolvency, news, statutory demands, winding up by sally

‘The economic consequences of the COVID-19 pandemic are putting incredible pressures on companies of all kinds and sizes. The UK Government has been at pains to signal its support for business during the COVID-19 pandemic, most notably the furloughing scheme and company loans announced by the Chancellor, and further announcements by the Business Secretary seeking to reduce the burden on businesses and keep companies running.’

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3 Hare Court, 11th May 2020

Source: www.3harecourt.com

The Court of Appeal provides confirmation on the implications of the use of the Government’s coronavirus job retention scheme by companies in administration: Re Debenhams Retail Limited [2020] EWCA Civ 600 – Radcliffe Chambers

Posted May 27th, 2020 in administrators, contract of employment, coronavirus, insolvency, news, remuneration by sally

‘In a judgment handed down on 6th May 2020 in Re Debenhams Retail Ltd (in administration) [2020] EWCA Civ 600, the Court of Appeal provided confirmation on the implications for office holders and insolvent estates of using the Government’s Coronavirus Job Retention Scheme in administrations, following the previous first instance decisions on the issue in Re Carluccio’s Ltd [2020] EWHC 886 (Ch) and Re Debenhams Retail Ltd [2020] EWHC 921 (Ch). Matthew Weaver considers the judgment and its implications in this briefing.’

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Radcliffe Chambers, 13th May 2020

Source: radcliffechambers.com

Judge denies bias in favour of former school friend – Litigation Futures

Posted May 13th, 2020 in bias, disclosure, insolvency, judges, news, recusal by sally

‘A judge has rejected a recusal application on the grounds of apparent bias, based on him being in the same class at school as the director of a defendant company more than 45 years ago.’

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Litigation Futures, 13th May 2020

Source: www.litigationfutures.com

The Response to Covid-19: Likely Corporate Insolvency Reforms and their Merit – 3 Hare Court

Posted May 5th, 2020 in company law, coronavirus, foreign jurisdictions, insolvency, news by sally

‘Countries around the globe have been grappling with the fallout from the Covid-19 pandemic. Amongst many issues the crisis has thrown up is the issue of how to deal with companies which suffer from solvency issues as a result of the pandemic, or government measures taken in response to the pandemic. The response of different jurisdictions has varied, as has the speed of the response. This article looks at the UK’s likely response and how it compares to other jurisdictions.’

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3 Hare Court, 23rd April 2020

Source: www.3harecourt.com

Insolvent FC – 3 Hare Court

Posted May 5th, 2020 in insolvency, news, sport by sally

‘Football insolvencies are different than others. In their community impact, yes, but, to some extent at
least, legally as well. They may also be becoming more common.’

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3 Hare Court, 4th May 2020

Source: 3harecourt.com

Insolvency Administrations Under the Coronavirus Lockdown – Thomas More Chambers

Posted April 24th, 2020 in administrators, chambers articles, company law, coronavirus, employment, insolvency, news by sally

‘Insolvency administrators often like to compare their salvage missions to the activity of fungi in recycling dying matter. Administrators, like fungi, earn a living by grappling with the products of decay, taking apart dying businesses and, where possible, identifying, reconstituting and revivifying the most promising bits.’

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Thomas More Chambers, 20th April 2020

Source: www.thomasmore.co.uk