Under new regulations to be made under section 3 of the Small Business, Enterprise and Employment Act 2015 (the Payment Reporting Regulations), large UK companies will be required on a half-yearly basis to prepare and publish a report on their payment practices, policies and performance for financial years beginning on or after 6 April 2017. There will
Global Restructuring Watch
Providing updates and commentary on global restructuring and bankruptcy law
Latest from Global Restructuring Watch - Page 3
What is half of nothing? Wrongful trading developments in the ‘Robin Hood’ case
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…
Amendment of Core Payment Terms Only: Second Circuit Court of Appeals reverses the Marblegate challenge to Section 316(b) of Trust Indenture Act 1939
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…
Watershed Ruling in U.S. Rejects OW Bunker’s Maritime Lien Claims
By Andrea Pincus & Jane Sarma
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…
Au revoir bailiff notifications for the assignment of receivables
Starting on October 1st , 2016 the French law on receivable acquisition has changed to become simpler. Before, a formal bailiff’s notification was required in order to render a receivable acquisition enforceable towards the debtor of such receivable.
Now a mere notification will achieve the same result. If no special form is imposed upon such…
Default interest gets washed out of the waterfall
The degree to which certain elements of a recovery right under a contract, including a debt instrument, are assignable or transferable to a third party has been questionable under English law for some time. “Litigation rights” are one example. Many English legal practitioners regard litigation rights as personal rights, and personal rights are by their…
Reed Smith Prepares Enforceability Opinion for IECA New Master Netting Agreement
On October 7, 2016, Reed Smith assisted the International Energy Credit Association (“IECA”) in preparing an enforceability opinion for the release its Master Netting Agreement (the “MNA”) under both English and U.S. law.1 The MNA is billed as a state-of-the-art solution designed to manage the termination, close-out, and netting of both physical and financial transactions, including in the…
Court of Appeal considers the treatment of contingent assets in balance sheet test
Evans v Jones [2016] EWCA Civ 660
Executive Summary
The Court of Appeal recently considered an appeal from the liquidators of a property development company which went into creditors’ voluntary liquidation. The company had made an unlawful dividend to its shareholders and the Court of Appeal considered whether the unlawful dividend should be treated as…
UAE Bankruptcy law
By Nika Silva & Sabah Rahman
Currently in the UAE, laws related to insolvency are unclear. Companies face harsh penalties in a bankruptcy scenario, and individuals can face criminal sanctions and penal sentences. However, a new bankruptcy law drawing from international best practice is expected to come into force in early 2017, in the wake of low oil prices since 2015.…
A lifeboat with conditions: new guidance from the PPF
The Pension Protection Fund (“PPF”) has updated its approach to employer restructuring guidance and its general guidance for restructuring and insolvency professionals. These documents set out certain criteria that should be met when making proposals to the PPF in respect of a sponsoring employer suffering an insolvency event.
1. The PPF Approach to Employer Restructuring:…