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United Kingdom Insolvency Financial Distress

Jones Day

BHS Liquidators Win Record Wrongful Trading Judgment—and Establish New "Misfeasance Trading" Law

Jones Day on

FRP Advisory Trading Limited won the United Kingdom's largest-ever wrongful trading claim and successfully established the first "misfeasance trading" claim against former directors of British Home Stores ("BHS"),...more

Mayer Brown

UK Government consults on new rules to recapitalise small banks in resolution – What does this mean for potential buyers of...

Mayer Brown on

What is the government proposing? The UK government (“HM Treasury”) has launched a Consultation setting out its proposals to amend the UK special resolution regime (“SRR”) to direct that the UK depositor guarantee scheme...more

K&L Gates LLP

UK Company Restructuring Plans: What Is Next After Adler?

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The England and Wales Court of Appeal recently handed down its first judgment relating to a restructuring plan under Part 26A of the UK Companies Act 2006: Re AGPS Bondco Plc [2024] EWCA Civ 24. Restructuring plans were a...more

Cadwalader, Wickersham & Taft LLP

Comet: The Court of Appeal provides timely guidance regarding unlawful preferences

Overview - The Court of Appeal has overturned the decision of the High Court in Carton-Kelly v Darty Holdings SAS, providing welcome clarity for directors of distressed companies when considering whether to make payments...more

Skadden, Arps, Slate, Meagher & Flom LLP

How Directors Can Manage the UK Supreme Court’s ‘Balancing Exercise’ in Difficult Times

Economic downturns can put both companies and their boards to the test. An important judgment from the U.K. Supreme Court in October 2022, the Sequana case,1 clarifies the obligations of directors of a company facing the...more

K&L Gates LLP

The Position of Directors of Financially Distressed Companies

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The UK Supreme Court has delivered its long awaited judgment in BTI v Sequana. It considers if and when directors of a financially distressed company incorporated in England and Wales have a duty to consider, or to act in...more

Latham & Watkins LLP

Restructuring with Regulators: Where Law and Policy Collide

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Balancing the urgency of delivering a restructuring with regulatory requirements in a regulated sector. Restructuring a company in a regulated sector is always challenging. Navigating directors’ duties is difficult...more

BCLP

Investing in Distressed Hotel Assets - What to Consider

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With government support instigated by the Covid-19 pandemic coming to an end, there is an inevitability that some hotel owners will sadly not have the liquidity to continue to operate in the medium term. Eager investors are...more

K&L Gates LLP

COVID-19: UK Government Announces End of Temporary Restrictions on Certain Insolvency Proceedings

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The UK government has announced that temporary restrictions on creditor action introduced in the Corporate Insolvency and Governance Act 2020 are to be phased out. These temporary restrictions were put in place to protect...more

Cadwalader, Wickersham & Taft LLP

Summer's Coming, May 2021 | Issue No. 24A - Further Blow to the Landlords? The Virgin Active Case and the New Restructuring Plan...

It’s not news that the COVID-19 pandemic has exacerbated losses in sectors that are reliant on footfall − namely, the retail and leisure industry. Prior to the pandemic, the general weakness in the “bricks and mortar” retail...more

K&L Gates LLP

COVID-19: UK Restructuring and Insolvency Update - July 2021 Is the Month to Watch

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The UK government has extended its suspension of various rules and procedures affecting distressed businesses as a result of the coronavirus (COVID-19) pandemic. However, with the UK lockdown easing on a rolling basis up to...more

A&O Shearman

The Corporate Insolvency and Governance Act 2020 – the most significant insolvency reforms in the UK for a generation

A&O Shearman on

The Corporate Insolvency and Governance Act 2020 (the Act) entered into force on 26 June 2020. The Act represents the most significant reforms to the insolvency framework in the United Kingdom since, at least, the widespread...more

BCLP

UK National Security & Investment Bill - the Potential Ramifications for Insolvency Practitioners

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The new National Security and Investment Bill, which aims to provide the Government with the necessary powers to scrutinise and intervene in business transactions to protect national security, will introduce a mandatory...more

Goodwin

The Return of Crown Preference on 1 December, 2020

Goodwin on

The return of Crown Preference on 1 December, 2020 has widely united the restructuring community against the new measures. Whilst the rationale that the Treasury should have priority for sums received by a debtor on its...more

K&L Gates LLP

COVID-19: UK Insolvency Reform - Standardising Company Voluntary Arrrangement Proposals

K&L Gates LLP on

EXECUTIVE SUMMARY - R3 Association of Business Recovery Professionals (R3), a trade association for the United Kingdom’s insolvency and restructuring industry, has launched a standard form proposal (Standard Form) for company...more

Jones Day

Legislative Update: Enactment of the UK Corporate Insolvency and Governance Act

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On June 25, 2020, the new UK Corporate Insolvency and Governance Act ("Act") became law after it was given Royal Assent by Queen Elizabeth II. The changes introduced by the Act will have a significant impact on the future...more

Latham & Watkins LLP

Transacting With Troubled Companies – 3 Tips for PE Deal Teams Navigating Stressed, Distressed, and Insolvent Acquisitions

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Successfully executing an acquisition from stress, distress, or insolvency requires a creative approach to reconcile competing interests. ...more

Dechert LLP

UK Life Sciences and Healthcare Newsletter - September 2020: Changes to Insolvency Rules Provide Breathing Space

Dechert LLP on

The UK Government has long been considering significant reforms of the UK’s insolvency framework, even before the advent of COVID-19. The pandemic resulted in the acceleration of those reforms and the passing of the new...more

Dorsey & Whitney LLP

COVID-19: UK Insolvency and Restructuring

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At the present time, due to the global outbreak of Covid-19 and the international response to it, many otherwise economically viable UK businesses find themselves subject to considerable financial pressure. There are a...more

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