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Latest Restructuring & Insolvency News

Government response to Law Commission report ‘Technical Issues in Charity Law’

The following Private Client news provides comprehensive and up to date legal information on Government response to Law Commission report ‘Technical Issues in Charity Law’

Contractual interpretation by administrators and common sense (Avery-Gee and others v Sibley and others)

The following Financial Services news provides comprehensive and up to date legal information on Contractual interpretation by administrators and common sense (Avery-Gee and others v Sibley and others)

Bankruptcy annulment and divorce (Lin v Gudmundsson (a bankrupt) and others)

The following Private Client news provides comprehensive and up to date legal information on Bankruptcy annulment and divorce (Lin v Gudmundsson (a bankrupt) and others)

Restructuring plan meetings convened on tight timetable in face of strong landlord opposition (Re Virgin Active Holdings Ltd)

The following Banking & Finance news provides comprehensive and up to date legal information on Restructuring plan meetings convened on tight timetable in face of strong landlord opposition (Re Virgin Active Holdings Ltd)

Featured Restructuring & Insolvency content

What is a statutory declaration of solvency, and what happens if a false declaration of solvency is made

Statutory declaration of solvencyA company enters voluntary liquidation when the members of the company vote to do so by a special resolution. For...

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...

Effect of equitable, contractual and structural subordination

Senior creditors will ensure that in addition to having higher security rights over junior creditors, juniors are also subordinated to them.Generally...

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...

Practice notes

The deemed consent procedure, decision-making procedure, and meetings—the position under the Insolvency (England and Wales) Rules 2016

The Insolvency (England and Wales) Rules 2016, SI 2016/1024 (IR 2016) provide for a revised scheme for decision making in insolvency from 6 April...

Produced in partnership with Richard Bowles 12th Jan

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 12th Jan

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

Covenant waivers and resets

One of the initial signs of distress is usually a covenant breach by the company. The lenders may agree to a simple waiver, which cures a temporary...

9th Nov

Practice notes

Practice Direction on Insolvency Proceedings

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

Proprietary claims

Creditors are often keen to establish proprietary claims as they create rights in rem (which attach to the property itself) rather than personal...

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 12th Jan

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 12th Jan

Practice notes

Transactions defrauding creditors—claims under section 423 of the Insolvency Act 1986

It is possible for a claim to be brought under section 423 of the Insolvency Act 1986 (IA 1986) against a company or individual following a...

9th Nov

In-house

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 12th Jan

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 12th Jan

In-house

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 12th Jan

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

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 9th Apr

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 9th Apr

Practice notes

Formal creditors' committee in a restructuring

In many restructurings, the early creation of a creditors' committee (or steering committee) will greatly assist negotiations between the debtor...

9th Apr

Practice notes

Creditors’ consideration of CVA proposals—the position under the Insolvency (England and Wales) Rules 2016

GeneralThe Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, provide a scheme for decision-making in all insolvency procedures. The...

Produced in partnership with William Willson of South Square Chambers 9th Apr

Practice notes

The Insolvency (England and Wales) Rules 2016—communications [Archived]

This Practice Note has been archived and is not maintained.Summary points•Electronic communication provisions extended through deemed consent where...

Produced in partnership with David Menzies of ICAS 9th Apr

Practice notes

The prescribed part under section 176A of the Insolvency Act 1986

What is the prescribed part?Background to the prescribed partWhen an insolvency office-holder is appointed, their primary role is to collect in and...

9th Apr

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 Jamil Mustafa of South Square Chambers 9th Apr

Practice notes

Marshalling debt

What is marshalling?Marshalling is where two or more creditors are owed money by the same debtor, and one creditor has more than one security whereas...

Produced in partnership with Karen Jacobs of Dentons 9th Apr

Practice notes

The deemed consent procedure, decision-making procedure, and meetings—the position under the Insolvency (England and Wales) Rules 2016

The Insolvency (England and Wales) Rules 2016, SI 2016/1024 (IR 2016) provide for a revised scheme for decision making in insolvency from 6 April...

Produced in partnership with Richard Bowles 9th Apr

Practice notes

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...

9th Apr

Practice notes

Liability for business rates in insolvency

Coronavirus (COVID-19)This content is affected by the coronavirus (COVID-19) pandemic. For further details, see our Coronavirus (COVID-19) toolkit....

9th Apr

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...

9th Apr

Practice notes

The Insolvency (England and Wales) Rules 2016—Part 17: Changes to creditors’ and liquidation committees [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 Faith Julian of 9 Stone Buildings 9th Apr

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...

8th Apr

Q&As

Can a director, who personally settles a company’s debt as a result of a personal guarantee they provided, then reclaim from the company in administration the sums they paid under the guarantee for the amount the company owed to the creditor?

For general guidance on guarantor rights, see Practice Note: Guarantor rights and how to defer them in guarantee documentation—no competition...

8th Apr

Q&As

Can a creditor claim in a liquidation where their debt is secured against a third party guarantor's property?

A guarantee is an agreement between one person/entity (the guarantor) and another person/entity (the creditor), whereby the guarantor will meet the...

8th Apr

Q&As

Where party A advances a transaction at an undervalue (TUV) claim against party B, can party B set-off sums owed to party B to party A as against the TUV claim?

Set off and the requirement for mutuality of debtsFor information on set off, see Practice Notes:•What is set-off and when is it available?•Insolvency...

7th Apr

Q&As

Is a void payment under the Insolvency Act 1986, s 127 available for set-off?

STOP PRESS: From 6 April 2017, the Insolvency Rules 1986, SI 1986/1925 were revoked and replaced by the Insolvency (England and Wales) Rules 2016 (IR...

7th Apr

Practice notes