Creditors' participation

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Featured Restructuring & Insolvency content

Compulsory winding up of a company—the process and procedure

STOP PRESS: The Corporate Insolvency and Governance Act 2020 contains provisions which, on a temporary basis (presently until 31 December 2020) impose...

The pari passu principle and collection remedies for the office-holder—the position under the Insolvency (England and Wales) Rules 2016

The primary function of office-holders in personal and corporate insolvency is to collect in the assets belonging to a company or individual and to...

Debt for equity swaps

A popular restructuring method is a debt for equity swap; financial creditors receive equity in the restructured vehicle in return for reducing or...

Winding-up and administration searches for companies at the Central Registry

STOP PRESS: This Practice Note is being updated for the Corporate Insolvency and Governance Act 2020 (CIGA 2020), which introduces a new insolvency...

Practice notes

Cashflow and balance sheet tests for insolvency

IntroductionThis Practice Note will give a basic overview of the applicable tests for cashflow and balance sheet insolvency under section 123 of the...

Produced in partnership with South Square 9th Nov

Practice notes

What is considered onerous property or contracts?

DisclaimerUnder sections 178 and 315 of the Insolvency Act 1986 (IA 1986), a liquidator or a trustee in bankruptcy (trustee) has the power to disclaim...

9th Nov

Practice notes

Role, powers, functions and duties of a liquidator

Coronavirus (COVID-19)This content is affected by the coronavirus (COVID-19) pandemic. For further details, take a look at our Coronavirus (COVID-19)...

9th Nov

Practice notes

Loan to value covenants

This Practice Note looks at:•the key features of loan to value (LTV) covenants•possible issues with calling an event of default based on a LTV...

Produced in partnership with Alexander Pelopidas, James Walton and Matthew Brew of Rosling King LLP 9th Nov

Practice notes

Effect of a moratorium in a company voluntary arrangement (CVA) on creditors and the company [ARCHIVED]

The Court of Appeal has made it clear in JCAM that a moratorium cannot be obtained through the back door by filing a notice of intention to appoint an...

Produced in partnership with Lexa Hilliard QC of Wilberforce Chambers 9th Nov

Practice notes

Equitable accounting—how it works in practice

This Practice Note looks at equitable accounting, what it is, how and when it applies. It does not look at how the trustee in bankruptcy (trustee)...

9th Nov

Practice notes

Court-appointed receivers—when a court will appoint a receiver and who may be appointed

This Practice Note covers receivers who are appointed by the court, including the circumstances in which a court will appoint a receiver and who may...

Produced in partnership with John Hughes of Shakespeare Martineau LLP 9th Nov

Practice notes

How to serve a demand for payment

A demand for payment is a formal demand made in accordance with the contractual requirements underpinning the liability which the party issuing the...

Produced in partnership with James Hannant of Guildhall Chambers 9th Nov

Precedents

Certificate of urgency for applications in insolvency proceedings

Court Reference No: [INSERT COURT REF. NUMBER][IN THE HIGH COURT OF JUSTICEBUSINESS AND PROPERTY COURTS [OF ENGLAND AND WALES OR IN [INSERT...

9th Nov

Practice notes

Prohibited names under section 216 of the Insolvency Act 1986

The purpose of section 216 of the Insolvency Act 1986Section 216 of the Insolvency Act 1986 (IA 1986) is aimed at preventing phoenix companies from...

9th Nov

Practice notes

Insolvency set-off—the position under the Insolvency (England and Wales) Rules 2016

IntroductionSet-off refers to claims that may be set-off against other claims. A set-off is the right of one party, Party A, who is owed money by...

Produced in partnership with South Square and BDO LLP 9th Nov

In-house

Practice notes

Key features of securitisation and asset based lending

BrexitBREXIT: The UK is leaving the EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on this Practice Note....

9th Nov

Practice notes

Misfeasance claims under section 212 of the Insolvency Act 1986

What is a misfeasance claim under section 212 of the Insolvency Act 1986?Claims commenced under section 212 of the Insolvency Act 1986 (IA 1986) are...

9th Nov

In-house

Practice notes

A guide to independent business reviews

This Practice Note looks at independent business reviews (IBRs) and aims to:•provide high level guidance around an IBR•identify when an IBR may be...

Produced in partnership with Allan Kelly of RSM 9th Nov

Practice notes

Avoiding invalid floating charges under section 245 of the Insolvency Act 1986

Coronavirus (COVID-19)This content contains guidance on subjects impacted by the Coronavirus Act 2020 and related changes to court procedures and...

9th Nov

Practice notes

Out-of-court administration appointments by a QFCH—the procedure

Coronavirus (COVID-19)This content contains guidance on subjects impacted by the Coronavirus Act 2020 and related changes to court procedures and...

9th Nov

Most recent Creditors' participation content

Q&As

Can equitable set-off apply to a situation where set off has been excluded expressly by terms of a contract between the parties?

Equitable set-offEquitable set-off arises when two claims are so closely connected that it would be unjust to allow one party to enforce its claim...

28th Nov

Practice notes

An insolvency lawyer’s guide to the Financial Services Compensation Scheme

This Practice Note provides an overview of the role and operation of the Financial Services Compensation Scheme (FSCS) and the ranking of deposits...

27th Nov

Practice notes

Waterfall of payments—a comparative guide

LiquidationThe order of distribution in liquidation, following the realisation of security by secured creditors (other than those with floating...

Produced in partnership with South Square 27th Nov

Practice notes

Waterfall of payments in liquidation—the position under the Insolvency (England and Wales) Rules 2016

The order of distribution in liquidation, following the realisation of security by secured creditors (other than those with floating charges) for...

Produced in partnership with South Square 27th Nov

Practice notes

Waterfall of payments in administration—the position under the Insolvency (England and Wales) Rules 2016

The order of distribution of a company’s assets in administration is found in the Insolvency Act 1986 (IA 1986) and the Insolvency (England and Wales)...

Produced in partnership with Robert Avis of XXIV Old Buildings 27th Nov

Practice notes

Waterfall of payments in administrative receivership—the position under the Insolvency (England and Wales) Rules 2016

Administrative ReceivershipThe order of distribution in administrative receivership is not well-delineated in IA 1986 and (from 6 April 2017), IR...

Produced in partnership with South Square 27th Nov

Practice notes

Waterfall of payments in bankruptcy—the position under The Insolvency (England and Wales) Rules 2016

After satisfying the claims of secured creditors, the trustee in bankruptcy (trustee) must distribute the remaining assets in accordance with the...

Produced in partnership with South Square 27th Nov

Practice notes

Contracting out of expense claims in administration and liquidation

It has long been standard practice for administrators and liquidators to seek to limit their liability when entering into contracts on behalf of a...

Produced in partnership with Matthew Thorn of Norton Rose Fulbright LLP 25th Nov

Practice notes

Set-off—key cases

This Practice Note sets out certain key cases and associated relevant content in relation to set-off. The cases are divided by topic area and...

25th Nov

Practice notes

Types of set-off

There are five main types of set-off:•independent set-off (sometimes known as legal set-off or statutory set-off)•transaction set-off (also known as...

25th Nov

In-house

Practice notes

Netting

In finance transactions, the terms 'netting' and 'set-off' are sometimes used interchangeably even though they are not the same thing. The confusion...

25th Nov

Practice notes

Foreign creditors—the position under the Insolvency (England and Wales) Rules 2016

Brexit impact—cross-border insolvency (Insolvency (Amendment) (EU Exit) Regulations 2019, SI 2019/146)As of exit day (31 January 2020) the UK is no...

Produced in partnership with South Square & BDO 24th Nov

Practice notes

Impact of Brexit: Deposit Guarantee Schemes—quick guide

This Brexit Deposit Guarantee Schemes Directive 2014/49/EU (DGSD) quick guide details current UK legislation and retained EU legislation that will be...

23rd Nov

Brexit

Practice notes

What counts as an expense?—the position under the Insolvency (England and Wales) Rules 2016

What are expenses? All fees, costs, charges and other expenses incurred in the course of winding up (IR 2016, SI 2016/1024, rr 6.42 and 7.108),...

Produced in partnership with William Willson of South Square Chambers 23rd Nov

Practice notes

Administration expenses

This Practice Note will give a basic overview of what amounts to an administration expense and some of the case law on this topic.Expenses of an...

Produced in partnership with William Wilson of South Square 18th Nov

Practice notes

The Insolvency (England and Wales) Rules 2016—Part 14: Claims by and distributions to creditors in administration, winding-up and bankruptcy [Archived]

ARCHIVED: This Practice Note has been archived and is not maintained. The Insolvency Rules 2016—coming into force and changesThe Insolvency (England...

Produced in partnership with Madeleine Jones of South Square 18th Nov

Practice notes

Dealing with suppliers, customers and ROT claims

Although suppliers are generally unsecured creditors (unless they establish a valid retention of title (ROT) claim) they may be key to a successful...

Produced in partnership with Tom Shepherd of 4 New Square 18th Nov

Practice notes

Informal creditors' committee in a restructuring

In many restructurings, informal (ad hoc or unofficial) creditors' committees are formed as opposed to formal creditors' committees (see Practice...

18th Nov

Practice notes

The Insolvency (England and Wales) Rules 2016—Part 15 and 16: Creditors meetings and proxies [Archived]

ARCHIVED: This Practice Note has been archived and is not maintained. The Insolvency (England and Wales) Rules 2016, SI 2016/1024 (IR 2016) were laid...

Produced in partnership with Eleanor Temple of Kings Chambers 18th Nov

Q&As