Beware! Phoenix legislation may extend beyond “scoundrel” directors to frustrating finance/restructuring projects

Beware! Phoenix legislation may extend beyond “scoundrel” directors to frustrating finance/restructuring projects

JIBFL April 2016 CoverThis article examines what is meant by phoenixing and the provisions – ss 216 and 217 of the Insolvency Act 1986 (IA86) – which are designed to curb this practice, together with how any director who might be caught may be able to avoid criminal and civil liability. It further focuses on the far-reaching implications this legislation may have on “innocent” directors and the (surmountable) hurdle it might have for fund-raising and restructuring projects that a company may typically undertake.

Finally, it explores in more detail a recent case in which such issues arose, the way that the author tackled them and summarises the takeaway points.

Click here to read the full article.

JIBFL will be sharing two articles per month on-line only. They will be available on the Loan Ranger blog one month after publication in LexisLibrary.

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About the author:

Neeta started her legal career at Allen & Overy in 2008 in the midst of the global financial crisis and the collapse of Lehmans where she gained most of her paralegal experience.

Neeta also did a short stint in litigation at the Revenue and Customs Prosecutions Office in 2006. Neeta graduated with a 2:1 honours degree from University of London, Queen Mary College and went on to obtain a distinction from the College of Law in the Legal Practice. She has been working at Lexis Nexis since April 2013.