Insolvency trading issues

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Featured Restructuring & Insolvency content

Key elements of a standstill agreement

When restructuring is considered rather than formal insolvency proceedings (see Practice Note: Benefits of restructuring over formal proceedings) the...

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...

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

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...

Produced in partnership with Stephen Allinson 9th Nov

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

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

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

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

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

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 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

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

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 Insolvency trading issues content

Precedents

Deed of release by a chargeholder

Dated the [insert day and month] 20[insert year]Parties1[name of Lender] a company incorporated in [England and Wales] under number [insert company...

4th Dec

Practice notes

The administrator and charged property

The success of an administration will often depend on the value of the assets available to the company and the administrator's ability to deal with...

Produced in partnership with Tom Shepherd of 4 New Square 4th Dec

Practice notes

IP right comparison table

This Practice Note compares patents, supplementary protection certificates (SPCs), trade secrets, copyright, database rights, design rights, trade...

4th Dec

Practice notes

Brexit and IP completion day—implications for employment lawyers

This Practice Note outlines the key general implications in relation to employment law in England arising from the UK’s withdrawal from the European...

4th Dec

Brexit

Practice notes

Consumer Rights Act 2015—goods

Brexit: This Practice Note has been updated to reflect the position as of 1 January 2021. Note that retained EU law and Brexit SIs referred to in this...

4th Dec

In-house

Practice notes

TUPE—effect of insolvency

This Practice Note considers how the application of the Transfer of Undertakings (Protection of Employment) Regulations 2006, SI 2006/246 (TUPE 2006)...

Produced in partnership with Gowling WLG 3rd Dec

Practice notes

Directors’ duties: companies in financial difficulties

Directors of companies which become, or are likely to become, insolvent face additional considerations and are under a duty to minimise losses to the...

3rd Dec

COVID-19

Practice notes

Wrongful trading claims under sections 214 and 246ZB of the Insolvency Act 1986

What is wrongful trading?Wrongful trading is a claim which arises under sections 214 (liquidation) and 246ZB (administration) of the Insolvency Act...

3rd Dec

In-house

Precedents

Letter to directors in an insolvency situation warning of main legal risks

Coronavirus (COVID-19) and the Corporate Insolvency and Governance Act 2020This content is affected by changes to UK insolvency laws made in response...

3rd Dec

Practice notes

The 14-day rule and adoption of employment contracts in administration and administrative receivership

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

3rd Dec

Practice notes

How a company's insolvency affects its employees

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

3rd Dec

Practice notes

Redundancy in insolvency—the basics

For the purposes of entitlement to a redundancy payment, an employee is dismissed by reason of redundancy if the reason for dismissal is:•the employer...

3rd Dec

Q&As

Can a customer list/customer contracts be sold other than through an asset purchase agreement?

There are no general property rights in data. There is an exception, however, where the data is capable of attracting copyright or database right...

2nd Dec

Practice notes

Key definitions under data protection law

Brexit: On 31 January 2020, the UK ceased to be an EU Member State and entered an implementation period, during which it continues to be subject to EU...

2nd Dec

Practice notes

Data protection principles

Brexit: On 31 January 2020, the UK ceased to be an EU Member State and entered an implementation period, during which it continues to be subject to EU...

Produced in partnership with Pillsbury Winthrop Shaw Pittman LLP 2nd Dec

Practice notes

Introduction to the EU GDPR and UK GDPR

Brexit: The Retained General Data Protection Regulation, Retained Regulation (EU) 2016/679 (UK GDPR) regime described in this Practice Note is the UK...

2nd Dec

In-house

Practice notes

Waterfall of payments—a comparative guide

LiquidationThe order of distribution in liquidation, following the realisation of security by fixed charge secured creditors for their benefit, is as...

Produced in partnership with South Square 1st Dec

Practice notes

Taxation in corporate insolvency—the principal issues in outline

STOP PRESS relating to insolvency and tax: Finance Act 2020 introduced provisions where:•with effect for business insolvencies that commence on or...

Produced in partnership with David Irvine of Kirkland & Ellis LLP, Stuart Pibworth of Weil, Gotshal & Manges (London) LLP and Philip Ridgway of Temple Tax Chambers 29th Nov

Practice notes

R&I spotlight on health and safety law

What is the main legislation covering this area?The main legislation concerning health and safety is the Health and Safety at Work etc Act 1974 (HSWA...

Produced in partnership with Jeremy Bark of Bryan Cave Leighton Paisner LLP 29th Nov

Practice notes