BTI 2014 LLC v Sequana SA –Directors’ Duty to the Creditor: Revisited
Article by Iffah Sheikh (6th March 2023) On 5 October 2022, the Supreme Court released its long awaited 160-page judgment for BTI 2014 LLC v Sequana SA[1] in which they answered whether the trigger for the directors’ duty to consider creditors is merely a real risk of, as opposed to a probability of or proximity…
What’s next? COVID law expired
At the time of writing this, a lot of the special COVID business protections and laws that were introduced by the government are beginning to expire as the UK prepares to ‘go back to normal’, at least in terms of law. The measures I am referring to are, of course, the ones around debt that…
Brexit, COVID-19 and UK Insolvency Proceedings
This is a handy summary on the effect of Brexit and COVID-19 on UK Insolvency Proceedings. This will be a useful guide for (i) those studying Company & Insolvency Law, (ii) students going for an interview with chambers who practice in this area, or (iii) students’ general knowledge and practice. BREXIT and Insolvency A) The…
The Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Act – Crackdown on “dodgy” company dissolution
Background of Insolvency Service’s powers under Company Directors Disqualification Act 1986 Prior to The Ratings (Coronavirus) and Directors Disqualification (Dissolved Companies) Act 2021 (“the Act”), the Insolvency Service (on behalf of the Secretary of State) only had the power to investigate the conduct of directors of companies that have entered into an insolvency process. The…
Case Analysis: RE Ipagoo LLP (In Administration) [2022] EWCA Civ 302
A key recent case in insolvency law has been the ongoing saga of Ipagoo LLP. Background and Initial High Court Judgment The facts of the case were as follows: Ipagoo went into administration in 2019. Ipagoo’s principal business was in electronic money, and as such it was under a duty to safeguard relevant funds, which…
Schedule 10 – CIGA 2020
Temporary protections were put in place under the Corporate Insolvency and Governance Act 2020 (“CIGA”) at the commencement of the coronavirus pandemic to provide enterprises, that were impacted, room to manoeuvre from the risk of winding up action. Nevertheless, the restrictions will not be lifted wholly. The UK government has introduced new temporary regulations through…
What is a Company Voluntary Arrangement?
A Company Voluntary Arrangement (“CVA”) is a contract made between the company and its creditors under the provision of the Insolvency Act 1986 to resolve the company’s debts. It allows a company to come up with an arrangement with its creditors to resolve some, if not all, of its debts. Once the CVA is in…
CIGA 2020 – A Shift to a Debtor-in-Possession Style of Insolvency Law
Insolvency legislation endeavours to manage a range of competing interests within society, making it a political and economic battleground, and the procedure aims to maximise the returns to creditors. However, recent reforms have favoured corporate rescue over creditor sympathy. The coronavirus pandemic created an unsympathetic economic environment for companies and forced the hand of lawmakers…
Further Court Insight into the “Coronavirus Test”
Introduction[1] 1. On 16 August 2021, the High Court handed down a judgment in the case of IN Re A Company and in the matter of the Insolvency Act 1986, which looked at the application of the Coronavirus test, giving insight as to when the test may be met. Case Summary 2. The petitioner in this case sought the winding up of “C Limited”. The petition debt arose out of a contract dated 4…
Temporary Insolvency Practice Direction extended until 30 September 2021!
At the end of June, Lord Wolfson approved the extension of the Temporary Insolvency Practice Direction, which replaced the previous TIPD. The bottom line to takeaway is that the procedures that have been followed for insolvency proceedings or for the provisions in relation to administration appointments and statutory declarations throughout the COVID-19 pandemic will remain…
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