Category: insolvency

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

Sign of the times: Debenhams Retail Ltd (in administration): Administrators and furlough arrangements – Exchange Chambers

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

‘It is a sign of the times that there have been two urgent applications to the High Court of Justice for directions by administrators in respect of furlough arrangements in the course of one week. Each application has concerned high profile companies employing vast numbers of people. The financial implications of the issues before the court in each case are significant for both employees and administrators.’

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Exchange Chambers, 22nd April 2020

Source: www.exchangechambers.co.uk

Directors Disqualification: Applying for Permission to Act During the Corona Pandemic – Radcliffe Chambers

Posted April 24th, 2020 in chambers articles, company directors, insolvency, news, practice directions by sally

‘On 6 April 2020 the Temporary Insolvency Practice Direction (“TIPD”) came into force. On 7 April 2020 the guidance note issued by Chief ICCJ Briggs confirmed that, for the purposes of TIPD, applications under section 17 Company Directors Disqualification Act 1986 are deemed urgent.’

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Radcliffe Chambers, 17th April 2020

Source: radcliffechambers.com

The consequences for administrators of furloughing employees – further clarification: Re Debenhams Retail Limited [2020] EWHC 921 (Ch) – Radcliffe Chambers

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

‘In a judgment dated 17th April 2020 in Re Debenhams Retail Limited (in administration) [2020] EWHC 921 (Ch), Trower J determined an application for directions by the joint administrators of Debenhams which concerned the impact of the application of the Government’s Coronavirus Job Retention Scheme in administrations and the recent decision of Snowden J in Re Carluccio’s Limited (in administration) [2020] EWHC 886 (Ch). Matthew Weaver considers Trower J’s judgment and its implications in this briefing.’

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Radcliffe Chambers, 21st April 2020

Source: radcliffechambers.com

Re Carluccio’s Limited (in Administration) – Pump Court Chambers

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

‘It should be noted from the outset that Snowden J’s judgment in Re Carluccio’s is not binding. There were no representative employees or interested parties during the remote video hearing so the judgment does not bind the employees or the government.’

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Pump Court Chambers, 22nd April 2020

Source: www.pumpcourtchambers.com

‘Light Touch’ Administration as a Rescue Tool – 3 Hare Court

Posted April 21st, 2020 in administrators, chambers articles, company law, coronavirus, insolvency, news, schemes of arrangement by sally

‘On the 28 March 2020, the Department for Business, Energy, and Industrial Strategy announced a series of insolvency legislation reforms including a new court based restructing tool modelled on the Scheme of Arrangement and a short business moratorium to protect companies facing the prospect of insolvency as a result of the Covid-19 crisis.’

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3 Hare Court, 20th April 2020

Source: www.3harecourt.com

Use of the Government’s coronavirus job retention scheme by companies in administration: Re Carluccio’s Limited [2020] EWHC 886 (Ch) – Radcliffe Chambers

Posted April 21st, 2020 in administrators, chambers articles, company law, coronavirus, employment, insolvency, news by sally

‘In a judgment handed down on Monday 13th April 2020 in Re Carluccio’s Limited (in administration) [2020] EWHC 886 (Ch), Snowden J considered the application of the Government’s Coronavirus Job Retention Scheme in administrations both as a matter of principle and in respect of the logistics and practicalities involved for office holders. Matthew Weaver considers the judgment and its implications in this briefing.’

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Radcliffe Chambers, 16th April 2020

Source: radcliffechambers.com

The Impact of Coronavirus on Winding Up Petitions – 3 Hare Court

Posted April 21st, 2020 in chambers articles, company law, coronavirus, courts, insolvency, live link evidence, news, winding up by sally

‘Coronavirus has affected both the functioning of businesses and the Courts. In these unprecedented times, how are the Courts dealing with the hearings of winding up petitions?’

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3 Hare Court, 14th April 2020

Source: www.3harecourt.com

CV19 and Corporate insolvency – Thomas More Chambers

Posted April 21st, 2020 in chambers articles, coronavirus, employment, insolvency, news by sally

‘On March 28, 2020 the government announced emergency insolvency initiatives to assist businesses through the CV19 lockdown and its aftermath. With UK SME’s (i.e. under 250 employees) facing an unprecedented existential threat from CV19, it is clear that help is needed to enable them to keep trading if they possibly can. The Government’s Coronavirus Job Retention Scheme will clearly help in the short term with employees but what of the underlying business structures? What help is there to keep companies away from the insolvency courts?’

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Thomas More Chambers, 14th April 2020

Source: www.thomasmore.co.uk

Carluccio’s, Covid-19 and Catch 22: The Furlough Scheme and paragraph 99(5) of Schedule B1 to the Insolvency Act 1986 – Hardwicke Chambers

Posted April 21st, 2020 in administrators, chambers articles, coronavirus, emergency powers, employment, insolvency, news by sally

‘The judgment Re Carluccio’s Ltd [2020] EWHC 886 (Ch) provides some much-needed clarity on the interrelation of the Furlough Scheme and the requirements of insolvency legislation. It is to be commended for its clarity and for the fact that it had to construe the workings of the Furlough Scheme in the absence of any statutory guidance as to its implementation. It is to be hoped that, when the Government comes to enact the necessary legislative measures (including perhaps amendments to Schedule B1 and IR 2016), that it does so with this judgment very firmly in mind.’

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Hardwicke Chambers, 14th April 2020

Source: hardwicke.co.uk

Covid 19 Employment Law Series: Insolvent Employers, Redundancy, and Covid 19 – Parklane Plowden

Posted April 21st, 2020 in chambers articles, coronavirus, employment, insolvency, news, redundancy by sally

‘Covid 19 has already had a tragic impact upon the health of many in the UK. One notable other consequence however, has been the impact upon the British economy.’

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Parklane Plowden, 3rd April 2020

Source: www.parklaneplowden.co.uk

Carluccio’s Limited (in administration) [2020] EWHC 886 (Ch). The first judicial decision on the Government’s Furlough Scheme – Parklane Plowden

Posted April 20th, 2020 in administrators, chambers articles, coronavirus, employment, insolvency, news, remuneration by sally

‘In a judgment handed down by Snowden J on a bank holiday on 13 April 2020 in the matter of Carluccio’s Limited (in administration) [2020] EWHC 886 (Ch), we have the first decision regarding the application of the Government’s Coronavirus Job Retention Scheme (“the Scheme”). The Scheme allows employers to claim for 80% of an employee’s salary (up to a maximum of £2500 per month) if staff are kept on the books doing no work (furloughed) rather than dismissed as redundant.’

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Parklane Plowden, 16th April 2020

Source: www.parklaneplowden.co.uk

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

Posted April 20th, 2020 in administrators, chambers articles, coronavirus, courts, insolvency, news, practice directions by sally

‘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

Posted April 16th, 2020 in administrators, chambers articles, coronavirus, employment, insolvency, news, transfer of undertakings by sally

‘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

Posted April 16th, 2020 in administrators, chambers articles, coronavirus, employment, insolvency, live link evidence, news, remote hearings, remuneration by sally

‘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

Out-of-Hours Appointments: A Temporary Fix to a Permanent Problem? – Radcliffe Chambers

Posted April 16th, 2020 in chambers articles, electronic filing, insolvency, news, practice directions by sally

‘The past year has seen repeated attempts by the courts to solve the conundrum of electronic working and how it interfaces with outof-court appointments of administrators. Six decisions, all conflicting in whole or in part, none likely to result in an appeal, did little to ease the uncertainty surrounding the validity of notices efiled outside court hours by CE-File. There was no substantive attempt at resolution on the part of the Companies Court or the Insolvency Rules Committee; the Chancellor issued guidance to the effect that notices filed out-of-hours would be referred to a designated High Court Judge.’

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Radcliffe Chambers, 8th April 2020

Source: radcliffechambers.com

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

Posted April 14th, 2020 in adjournment, administrators, coronavirus, damages, insolvency, liquidators, live link evidence, news by sally

‘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

COVID-19 New Insolvency Rules – Radcliffe Chambers

Posted April 3rd, 2020 in chambers articles, coronavirus, insolvency, news by sally

‘The Government has proposed imminent new insolvency rules with the aim of helping more businesses weather the COVID-19 storm and avoid entering an insolvency process. The overriding objective is to assist UK companies to keep trading whilst restructuring. The measures proposed to give this breathing space are set to include a suspension of the current wrongful trading provisions and a new moratorium for businesses undergoing a restructuring process.’

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Radcliffe Chambers, 30th March 2020

Source: radcliffechambers.com